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• 11.1 Administration Costs
• 11.2 Employee-Related Claims
• 11.3 Apprentices
• 11.4 Revenue-Related Claims
• 11.5 Reorganisation Costs

The Ministry welcomes submissions on all aspects of this discussion document. However, comments are particularly sought on the issues discussed in section 11.1 to 11.5 below:

11.1 Administration Costs

Should the Insolvency Act 1967 be amended so the priority is extended to include remuneration granted to those helping the Official Assignee or liquidator in an official capacity?

11.2 Employee-Related Claims

1. Should the priority afforded to employees in respect of any arrears of salary and wages and related earnings be retained?
2. Will a solution based on the European Union Acquired Rights directive resolve the problems associated with the sale of a going concern?
3. Should priority be extended to redundancy payments?

11.3 Apprentices

Should apprentices be afforded the same priority as that presently offered to employees?

11.4 Revenue-Related Claims

1. Should the priority of Goods and Services Tax, customs duty, and levies under the Fisheries Acts and the Radiocommunications Act (in corporate insolvency and personal bankruptcy) be abolished? If so, why? If not, why not?
2. Should the preferential status of NRWT and RWT (in corporate insolvencies under the Companies Act 1993) be retained and extended to personal bankruptcies under the Insolvency Act 1967? If so, why? If not, why not?
3. If the response to questions 4(a) and (b) is affirmative, what impact will this have on the behaviour of Crown agencies, businesses and consumers?
4. Is it feasible to abolish specific priorities and replace them with a single provision based on clause 2(d) of the Seventh Schedule of the Companies Act 1993?

11.5 Reorganisation Costs

1. Should the Insolvency Act be amended to provide that the actual expenses incurred by those assisting the Official Assignee or liquidator (in an official capacity) be afforded priority?
2. One of the key themes of the Ministry's Tier Two review papers is the development of a corporate rescue culture. In this context, should a new priority be introduced for costs associated with unsuccessful companies?