§ The Attorney-General
I shall circulate in theOfficial Report a fuller account of the circumstances of the agreement. In essence, Kagan Textiles Ltd. undertook to provide Cellofoam (Yorkshire) Ltd. with funds to pay the fine of £375,000 over an eight-year period in return for an undertaking from the Treasury not to pursue a petition to wind up Cellofoam (Yorkshire) Ltd.
Below is the fuller account—In December 1980 Cellofoam (Yorkshire) Ltd.,, a company controlled by Lord Kagan, was fined £375,000 for various offences. The company had no resources to pay any of the fine. The Treasury Solicitor took the necessary preliminary steps towards petitioning to wind up Cellofoam. This led to an agreement whereby, in return for HM Treasury not petitioning, Kagan Textiles Ltd., which is a substantial trading company, undertook to provide Cellofoam with funds out of its future profits to enable Cellofoam to pay the fine by instalments as follows:—
- 1. £2,000 within 30 days of 3 October 1985.
- 2. £5,000 during 1986 and the same during 1987.
- 3. £25,000 during 1988 and the same during 1989.
- 4. £100,000 in each year from 1990 to 1992 inclusive.
- 5. The balance during 1993.
This agreement was the best that could be reached, particularly having regard to the resources and present liabilities of Kagan Textiles Ltd., and gives a reasonable prospect that the fine will eventually be paid. The only alternative would have been to proceed with the winding-up petition of Cellofoam but this would have produced nothing for the public purse and would have caused the Crown additional expense.The first instalment of £2,000 has been paid.