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Pre-packs are encouraging legalised theft

24th March 2011, Page 16
24th March 2011
Page 16
Page 16, 24th March 2011 — Pre-packs are encouraging legalised theft
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Which of the following most accurately describes the problem?

I READ Peter Draper’s letter, saying that pre-pack administrations are too common (CM 17 February), with much interest.

I used to work for a company with several ofices; the industry has always been on very tight margins, and there is always somebody willing to undercut. I knew my costs and chased work accordingly. The MD used to say to me: “Just get the work, let me worry about making the rates pay.” I guess its easy to make it pay if you don’t pay for your vehicle hire, and self-employed drivers. Effec tively these people involved in pre-packs are legalising theft by using a separate legal entity to steal from other businesses, and then paying themselves large salaries with that money.

Alan Fisher By email