HC Deb 26 February 1935 vol 298 cc930-1
22. Sir CHARLES CAYZER

asked the President of the Board of Trade whether, in view of the failure of four motor insurance companies since the passing of the Road Traffic Act, 1930, and the consequent hardship which has been inflicted upon the policy holders in these companies and members of the general public, he proposes to make more frequent use of the Assurance Companies (Winding-up) Act, 1933, under which he has the power to examine the books of motor insurance companies and apply for compulsory winding-up orders in order to eliminate any remaining unsound companies?

The PRESIDENT of the BOARD of TRADE (Mr. Runciman)

As I stated in reply to the hon. Member for Westhoughton (Mr. R. J. Davies) on 19th February, the Board of Trade will not fail to take action whenever, on the information available, there is reason to believe that a company coming within the scope of the Act is insolvent.

Sir C. CAYZER

Does the right hon. Gentleman not think it advisable that his Department should take action before and not after these companies get into difficulties; and does he not think that a campaign on the lines which I have ventured to suggest in this question might do something to eliminate unsound companies?

Mr. GRAHAM WHITE

Is the right hon. Gentleman satisfied that there is machinery available to him for the purposes of any action which he is prepared to take?

Mr. RUNCIMAN

A number of difficulties arise in taking action before insolvency is reached, and I should not like to answer a question on that subject without notice.