Ross, Skye & Lochaber MP Charles Kennedy has expressed disappointment after a Dunvegan-based firm, Gaeltec Ltd, which supplies medical sensors to a worldwide market was forced to appoint Administrators by Her Majesty’s Revenue & Customs.

Mr Kennedy was originally contacted by the firm over HMRC’s refusal to delay repayment of £28,000 outstanding employers’ national insurance contributions from 2008. A consultant acting on the firm's behalf has estimated that the cost to the public purse of redundancy payments alone could amount to £120,000 if the firm is not able to continue trading.

Charles Kennedy raised the matter on the floor of the House of Commons with the Secretary of State for Scotland Jim Murphy MP last month, and has since been in touch both with Mr Murphy and with the Treasury. He spoke today to Gaeltec Managing Director, Syd Johnson who told him of the decision, which was taken to avoid liquidation and protect jobs.

Commenting, Mr Kennedy said:

“It is deeply disappointing that the Government has not been willing to work with the current owners of Gaeltec to allow gradual repayment of its debt.

“The actions of HMRC are threatening to undermine the future of a strong company in a small community, which forms part of an important sector of the Highlands & Islands economy. Potentially, the taxpayer will be the big loser if redundancy costs have to be paid – and in the meantime staff are being placed in a very worrying position.

“Gaeltec is a well-established, good business, with a strong team of staff. I very much hope a buyer will come forward in the days ahead so the business can continue trading, and some or all of the jobs can be saved.”

Notes:

Gaeltec Ltd has been trading for almost 40 years (since 1971), and manufactures a range of medical pressure sensors. Further details of the company are available at http://www.gaeltec.com/

The life sciences sector is a key focus of Highlands & Islands Enterprise strategy for the region’s economic future.