date: 22 November 2007
embargo: for immediate release
Commenting on the final recommendations from David Walker's review of disclosure on private equity, TUC General Secretary Brendan Barber said: ' The Walker Review has fallen short by recommending that private equity firms need not disclose their fees to anyone but their investors. This is plainly wrong. There is major public concern that private equity firms use assets from the companies they own to line their pockets at the expenses of the companies and their staff. Continued secrecy on fees will do nothing to allay these fears and is an own goal by the private equity industry.
'The report also recommends that the identity of investors in private equity firms remains secret. Allowing the paymasters of private equity to remain in the shadows is another a major gap in Walker's recommendations.'
'There is a danger that Walker's voluntary recommendations will prove toothless. The Government must make it clear to the private equity industry that if this voluntary code fails to bite, then statutory regulation will follow promptly.'
'This review has only covered one small part of the public's concerns on private equity. The issues of jobs, treatment of employees, debt, tax and the wider economic impact of private equity were not even part of the remit. Wider action is needed to ensure that private equity becomes a trustworthy and responsible player within the UK economy.'
NOTES TO EDITORS:
- You can read the TUC's full submission to the review online here
- All TUC press releases can be found at www.tuc.org.uk
- Register for the TUC's press extranet : a service exclusive to journalists wanting to access pre-embargo releases and reports from the TUC. Visit www.tuc.org.uk/pressextranet
Rob Holdsworth T: 020 7467 1372 M: 07717 531150 E: [email protected]
TUC Press Office T: 020 7467 1248 M: 07778 158175 E: [email protected]
Issued: 20 November, 2007