Member

Finally, Amendment 102, tabled by my noble friend Lord Sikka, would create a new performance ground for applications for companies to be placed in special administration. The new performance ground would be based on the number and frequency of the company’s criminal convictions. I reiterate to my noble friend that special administration is a last resort. It must be a last resort because it has significant consequences for a company’s investors. Investors would not have the confidence to invest money if the special administration regime could be triggered without allowing a company to rectify any performance issues. The consequence would be instability in the market. Instead, the Secretary of State and Ofwat consider all aspects of a company’s performance and enforcement record when considering whether to pursue a special administration regime on performance grounds.