MEP opposes more red tape on struggling companies

A raft of Socialist proposals which would make it much harder for companies to restructure their operations in difficult times was adopted by the European Parliament yesterday (Tues) in the face of resolute opposition from East Midlands MEP Emma McClarkin and other Conservative MEPs.

The report from the parliament’s Employment Committee recommends new rules which would require any company with more than 100 staff go through a lengthy and complicated process before any restructuring – and would even make the firm responsible for retraining employees facing redundancy.

Emma McClarkin MEP opposed the proposals as a “socialist wish list” which would destroy the ability of struggling companies to stay afloat. She believes the proposed rules would leave them hamstrung at the very time they need to move promptly and effectively to restructure and save their businesses.

After the vote in Strasbourg, Miss McClarkin said:

“Layering on yet more red tape on struggling companies in a time of economic fragility giving businesses less flexibility is madness.

It is very disappointing that a majority of MEPs have chosen to back proposals which are unrealistic, impractical and self-defeating. These measures would not save a single job but could instead push struggling companies into collapse.”

She added:

“Thankfully these are not legislative proposals. They are in a so-called own-initiative report so the vote does not make them law. The European Commission is, however, obliged to respond to the suggestions and MEPs voted to urge the Commission to come forward as soon as possible with a legal act.

“I hope the response will be a sensible and practical one and will take note of our very grave fears about the thrust of these proposals.”