date: 19 November 2007
embargo: 00:01 hours Tuesday 20 Nov 2007
Looking forward to tomorrow's publication of the Walker review of Private Equity disclosure, TUC General Secretary Brendan Barber said:
'The Walker Review will not end the debate about private equity, as however thorough, it will be purely voluntary and only deals with one relatively narrow aspect. While we can expect the private equity sector to describe its requirements as a huge sacrifice, the truth is that they have chosen this ground on which to make limited concessions.
'While disclosure is vital, the wider implications of the growth of private equity will not be touched by Walker. Initial concern about private equity centred on its get-rich-quick asset stripping and tax avoidance. The credit crunch has ended easy credit for these kind of takeover bids, but the real worry now is that some existing private equity deals will not be able to fund their borrowings. This could have even worse implications for jobs, tax and the wider economy than its initial growth.'
NOTES TO EDITORS:
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Issued: 20 November, 2007