The dramatic collapse of British parcels carrier City Link, which went into administration onChristmas Eve and has closed down with more than 2,500 job losses so far, has escalated into a
political dispute with calls for an official government inquiry.Just months ahead of a general election, the opposition Labour Party yesterday challengedthe Conservative – Liberal Democrat government to launch an inquiry into the sudden failure of theparcels company.
Speaking in Parliament, the party’s shadow business secretary Chuka Umunna demanded “a fulland proper inquiry”, saying that “those who have lost their jobs and contractors who are owed moneydeserve nothing less”. He criticised the “utterly appalling” situation in which City Link workershad learned of the company’s demise from TV reports on Christmas Day.
In response, Business Secretary Vince Cable said that an inquiry might take place but woulddepend on the outcome of an auditor’s report that is expected in about six months’ time. “Dependingon what that says, we may want to initiate an investigation, but let us wait and see the findingsof that,” he said. This means that any inquiry would not be held before the forthcoming election inMay.
Some 2,350 staff were officially made redundant on New Year’s Eve and a further 230 werelaid off earlier this week, leaving just a small skeleton staff of 141 people to wind down thecompany. Administrators Ernst & Young (EY) said a total of 51 City Link depots would bepermanently closed by 15 January 2015.
