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The fund will receive pounds 300 million a year from a levy on pension schemes, and will also take over the assets of schemes when firms go bust.
Despite gloomy predictions from unions, BDO said fewer manufacturing firms were set to go bust in 2004 than at any time over the past decade.
It is almost inevitable that some companies will go bust in a recession.
Seventeen companies with ATOL licences - which protect holidaymakers when travel firms go bust - have failed this year, most recently Kiss Flights last week.
Blastland says more travel firms "trading in the toughest market for many years" are bound to go bust in the coming months.
NEVER book your flight on a debit card - always use a credit card which offers greater protection including refunds if firms go bust.
Unions Community and Amicus have brought the case against the UK Government, saying the Government failed to comply with an EU Directive that says member states have to have protection in place for workers whose firms go bust.
Rival carrier Easyjet said the collapse of Duo, which began trading just seven months ago,had brought a ``severe dose of reality'' to an overcrowded market and warned that more companies would go bust in the battle to provide ever lower fares.
However, the realist in me says that all ACL/city council have done is put off the inevitable and ACL will probably go bust over the next 12 to 18months, leaving Sisu to come in and return CCFC to the Ricoh Arena to play their football, which is of course what the fans are asking for isn't it?