A Transgression
of the Recession
This month's copy isn't orientated around how lovely
it is living in Cornwall and our fluffy, idyllic lives; I want to put
into perspective that the reality is precisely the same for us as many
other trying to make a living in tough times.
A thick white A4 envelope came in the
post with 'private and confidential' printed on the front...no,
it wasn't a circular selling Inheritance Tax advice....but a wodge of
paper with 'TO ALL CREDITORS' across the top. It was the first, and let's
hope the last, of our clients to be chewed up and spat out by the credit
crunch. This client is, I should use the past tense now, was, a successful
building developer, who for many years has provided nearly 500 sensibly
priced homes for families across the county. The most recent project
of 29 apartments, some of which are for local needs, had 21 sold or reserved,
most of which are near completion and ready for occupation, and guess
what? The bank called in the loan!
Subsequently, all worked has stopped,
the buyers are in limbo, many local firms and individuals are creditors
and skilled tradesmen have been laid off and the site has since been
boarded up and where should have been sympathetically-designed homes
in a lovely leafy road, the area looks like the arse end of a slum.
We
understand that once the business is wound up there will be zilch left
for flotsam and jetsam unsecured creditors... there wouldn't be would
there while the accountants are paying themselves £611 an hour
for partners, £406 an hour for managers and £220 an hour for stamp lickers. The
charge out fee for the first month of the 'administration' process came
to a glorious total of £109,155, and that doesn't include expenses. If
you think I'm inventing this, I wish I was, click the image to see the
proof!
I'm writing this on the first day of the G20 meetings in London where
banker bashing is threatened as the new pastime, however, I would suggest
looking a little deeper at the accountants lurking in the shadows like
maggots in a rotten apple; they can't be seen but are greedily munching
on the tasty parts. For us and many similar businesses, its more than
our own income lost, it's a potential of future income flushed down the
pan. Anyone care to take a bet on who will NOT be out of pocket?
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