Local Democracy, Economic Development and Construction Bill [HL]

My Lords, I was unable to be in the House on Wednesday when the noble Earl moved his Motion, but I read the debate with interest. Clearly, this Bill cannot stop the orders; that is not within the scope of the Bill. However, there is something, which I take from the debate, which the Government could do. I was glad to see that the Minister's response answered the point about trading while insolvent. Given that the rates due in the future are a future liability, she talked about, ""the directors’ reasonable expectations of being able to meet their liabilities as they fall due in the future".—[Official Report, 18/3/09; col. 304.]" She said that they are not in such an extreme position as seems to have been suggested in some quarters. I was glad she said that because it confirmed what I had understood to be the case although my professional experience of this is by no means recent. The Government can impress on banks and on lenders that that is the position. The concern expressed was the difficulty in which individual companies are being left because lenders are taking the view that they are either insolvent or in such a precarious position that one must not lend to them. In saying that, I am not in any way trying to diminish the seriousness of the position and the problems faced by some companies. We own a large part of the banks so we should always use opportunities to persuade them to act in a civilised manner. That is a specific point which the Government could take up.