HC Deb 05 March 1929 vol 226 cc175-6
11. Captain GUNSTON

asked the President of the Board of Trade if he is aware that in small bankruptcy cases of £150 and less nearly the whole of the estate is swallowed up in fees payable to the Board of Trade, legal expenses, and trustees' remuneration, and that practically nothing is left for division among the creditors; and will he look into the matter with a view to having it remedied by legislation?

Sir P. CUNLIFFE-LISTER

The incidence of costs in smaller bankruptcies is undoubtedly heavy, although, generally speaking, not so heavy as is suggested in the question. This matter has received the constant attention of my Department, and many special reductions in the scales of fees have been made for small estates: but the revenue from bankruptcy fees is designed to cover the cost of bankruptcy administration, and any further reduction would involve a deficiency.

Captain GUNSTON

Has my right hon. Friend's attention been called to a recent case in which the Thornbury Rural District Council were one of the creditors? Is he aware that in this case an estate of £150 shrank to £2, after the various fees and expenses had been paid?

Sir P. CUNLIFFE-LISTER

I cannot say that my attention was called to that particular case, but there are statutory duties put upon the Receiver in Bankruptcy, and they involve in some cases very considerable investigation. As long as Parliament requires those duties to be discharged, they must be paid for.

Captain GUNSTON

Does not my right hon. Friend think that it is not a question whether the fees are in accordance with the scale, but whether the scales are in accordance with county court requirements?

Sir P. CUNLIFFE-LISTER

The scales, as I have said in my answer, have been very considerably cut down in the case of solicitors and surveyors and other professional men, and I am advised that they could not be cut any further if competent people are to be employed to do the work.

Captain GUNSTON

If I supply my right hon. Friend with particulars of a case, will he look into it?

Sir P. CUNLIFFE-LISTER

Certainly.