The Secretary
Parliamentary Joint Committee
 on Corporations and Financial Services
Room SG.64
Parliament House
CANBERRA ACT 2600
31 January 2003

Dear Sir/Madam

Please find attached our submission on your enquiry into Australia’s Insolvency Laws we thank the Joint Committee for calling this enquiry as we believe it is opportune to reconsider how Australia deals not only deals with Insolvent companies but preventing Insolvencies. We believe there are ways to prevent companies’ financial and management difficulties becoming so severe, that they cause major losses to employees, creditors, governments and the wider community. 

Essentially we are recommending Policy and Legislative changes by the Commonwealth Government to support the establishment in Australia of an effective  Business Turnaround Industry. Unfortunately our current Insolvency Laws do not in practice enable or encourage Business Turnarounds to be realistically considered in the majority of cases when a company is in financial difficulties.

Our submission is centred on recommending changes to Insolvency Laws that would in a great many cases achieve a much better outcome for companies in financial difficulties. The beneficiaries of this would be:
•	employees,
•	creditors,
•	company officers and directors
•	shareholders
•	the wider economy

Pacific Capital has been actively involved in the formation of the Business Turnaround Association. This group of respected professionals has come together to raise awareness of the concept of Business Turnarounds and promote the benefits (for all stakeholders) for most companies to consider undertaking a “Business Turnaround” when they get into financial difficulties. 

For the Business Turnaround culture and industry to become effective in Australia in a major way it needs the encouragement and legislative support of the Commonwealth Government and its Parliament.  

We would be pleased to provide any further information you may require.

Yours Faithfully

Michael O’Neill
Managing Director.