welsh business heads for slump
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• Business optimism is plummeting and bankruptcy figures among small businesses in Wales are rising, according to the Federation of Small Businesses Wales (FSBW).
It is calling for a new attitude towards struggling firms, and has published a seven-point plan of action.
"The emphasis must be towards rescuing them rather than going for their throats," says FSBW spokesman Russell Lawson.
A quarterly survey from accountants Dun & Bradstreet shows that only 16% of Welsh businesses are expect to win new business, compared with 29% nationwide.
The action plan recommends that insolvency practitioners should be registered to stem the flood of "ambulance chasers", and payment should be based on a percentage of the firm's assets rather than on a time basis.
A temporary freeze on debt collection while a supervised rescue plan is put into place is also recommended, to avoid jumpy creditors demanding immediate payment.
Other points include removing queue-jumping rights for preferential creditors including banks and the Inland Revenue; and allowing creditors to finance legal action against fraudulent directors.