Charles Walker asks the Trade and Industry what measures he is taking to ensure individual plc directors are aware of their obligations to their shareholders in respect of business continuity planning.

Mr. Walker: To ask the Secretary of State for Trade and Industry what measures he is taking to ensure individual plc directors are aware of their obligations to their shareholders in respect of business continuity planning; and if he will make a statement. [87905]

Mr. McCartney: Company directors, including plc directors, have no specific statutory obligations in relation to business continuity planning. They do owe general duties to the company, such as the duty to exercise reasonable care, skill and diligence.

All employers, however, have an interest in ensuring effective business continuity planning. The Government are therefore working closely with the business community to encourage and support robust, flexible business continuity planning. In addition to sector-specific forums on business continuity in areas such as the financial and energy sectors, the Government have set up a new Business Advisory Group on Civil Protection through which effective dialogue between business and government on civil protection issues will be pursued, and through which the Government are seeking to provide guidance and support to the business community to assist them in implementing business continuity management. The group is attended by a wide range of business representative organisations.

In addition, the Government have published a wide range of guidance for businesses to assist them with business continuity planning. For example, the Preparing for Emergencies website (www.pfe.gov.uk) was re-launched in March, and is delivering a single portal for advice to business on emergencies and business continuity.

At a local level, local civil protection practitioners work closely with businesses to assist in emergency preparedness and planning, and in the event of emergencies occurring. The Civil Contingencies Act (2004) places a duty on local authorities to provide advice and assistance to businesses and voluntary organisations in relation to business continuity planning. This came into force on 15 May 2006.

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