You can see we have linked our blog to Rachel Elnaugh's blog (ex Dragons Den), she has been invited to advise Parliament's Business and Enterprise Committee along with James Caan, Doug Richard to give evidence this week on how Britain can create a 'higher added value economy'
I commented on her Blog that whilst they may appear to listen Government does not seem to act on such reports and committees. We have featured a report on https://www.companyrescue.co.uk/ into the low levels of adoption of the CVA tool in the UK which was initially commissioned by the DTi .
Author Tim Mocroft interviewed 5-10 of our clients in 2003-4 along with a number of other companies in CVA. When he published his report he stated that he thought CVA was a great tool, but it was seriously under utilised, it was almost completely unheard of by business people and banks alike and he laid the blame at the door of DTi (now BERR) and the insolvency profession.
So it was not a suprise that DTi refused to publish it for fear of upsetting The Insolvency Service, the DTi and the insolvency profession. A think tank called CSFI (Centre for the Study of Financial Innovation) DID publish it.
Called "Companies Cannot Do It Alone" it laid out some recommendations to increase the use of CVA's in the UK. These included more publicity from Government to improve awareness of the CVA, education for business people on the options available....
"Nevertheless, we can say with some confidence that, for the CVA process to become firmly established as a method of company rescue and for its potential to be fully exploited, several
conditions need to be met:
- the CVA process must be publicised much more widely;
- company managements must be made more aware of their options for rescue; and
- more (and better) independent help/advice must be available to company
You can download a copy by clicking this link.
Please feel free to read this important report and email it to anyone who may be interested. I am happy to discuss any of the report findings and or publish your views or comments on the CVA tool, insolvency practitioners' views about CVA or any other comment. Please email me at email@example.com or click the comment box below.
Have a good Tuesday! Keith