Conservative leader David Cameron today unveiled proposals to introduce US-style insolvency rules to help prevent companies collapsing in an economic downturn.
Cameron proposed the introduction of certain elements of the US’ Chapter 11 rules in order to allow firms breathing space to recover.
Cable says this type of system “rewards failure” and also allows companies to “weazle their way out” of paying pensions owed to employees.
Speaking at the Confederation of British Industry today Cameron launched the Conservative Economic Recovery Plan.
He said: “We want to make sure sound companies do not go into liquidation unnecessarily.”
But he said that it was not desirable to save all companies from failing.
Cameron also attacked the Government for not fast-forwarding the proposed increase in savers’ protection to £50,000, so that it would protect savers in the event that a bank should fail during the parliamentary recess.
The Conservatives pledged to cut Corporation Tax to 25p and reverse tax increases for small businesses in order to prevent firms from moving offshore.