HC Deb 19 April 1989 vol 151 cc334-5
20. Mr. Foulkes

To ask the Chancellor of the Duchy of Lancaster what information he has concerning losses to investors in financial institutions which have gone into liquidation over the last 12 months.

Mr. Maude

My Department only keeps records of those financial institutions in respect of which it has itself applied for compulsory winding-up orders. In the past 12 months such action has been taken against eight financial institutions. In these cases the losses to investors are estimated at £4 million. This figure does not include cases where winding-up orders were sought by the Securities and Investments Board.

Mr. Foulkes

Is the Minister aware that Greenan Investment Management in Ayr went into liquidation with a loss to investors of £1 million? Following this up, I find that some of those investors will not be fully compensated by the investors' compensation management scheme. Will the Minister look into the matter to see whether there are ways in which compensation can be improved?

I understand from Sir Anthony Barrowclough, the Parliamentary Commissioner, that his report on Barlow Clowes, which was expected this month, will take several months more because of the complicated nature of the investigations into the affair, which he is supervising personally. In the light of that, does the Minister think that it is fair to ask investors to wait many more months before they have any chance of receiving compensation, or will he now consider some kind of scheme to help those who have lost very substantially indeed, some of whom are retired people, including retired miners in my constituency, who are now in great difficulties as a result of the collapse?

Mr. Maude

I am very much aware of the distress and hardship caused to people whose money was not repaid to them following the liquidation of Barlow Clowes. I cannot comment on how long the Parliamentary Commissioner's investigation will take; it is a matter entirely in his control and it is for him to draw it to a conclusion when he can. All I can say is that my Department has co-operated fully with his investigation at every stage.

As regards providing compensation at this stage, I must tell the hon. Gentleman that I see no reason now for changing the view that we reached in the autumn, when we concluded, on the basis of Sir Godfray Le Quesne's detailed and exhaustive report, that the Department's handling of the case had been careful and considered and that, on those grounds, there was no basis for making ex gratia payments.