Insolvency Service Agency (Hansard, 13 April 1994)

§ 12. Mr. Jon Owen Jones
To ask the President sof the Board of Trade what recent increase there has been in the staff of the Insolvency Service agency's disqualification unit.

§ Mr. Neil Hamilton
The Insolvency Service's disqualification unit has recently been increased by four staff on loan from other Government Departments and by two fully qualified staff seconded from the private sector. In 1994-95, we propose to provide further resources to enable up to 15 extra staff, including secondees from the private sector, to be added to the complement of the unit. Official receivers will be committing more of their resources to disqualification and prosecution work. As a result, disqualification proceedings against unfit directors are expected to increase substantially within 12 months of completion of training of the new staff.

§ Mr. Jones
The Minister's announcement of a total of 15 extra staff is welcome, but it is hardly likely to make much of a dent in the increased demand on the Insolvency Service from the increase of over 400 per cent. in bankruptcies since 1987. What does the Minister say to the National Audit Office's report on the Insolvency Service last year, which stated that up to 50 per cent. of directors who merited disqualification would not be disqualified because the resources were inadequate, or to the admission—

§ Madam Speaker
Order. This is Question Time. I must have brisk questions and brisk answers.

§ Mr. Hamilton
Since 1989-90 the number of staff employed in the Insolvency Service has increased from 1,400 to 1,800. There has been, as a result of the recession, a significant increase in the workload of the service with which it has coped extremely well. We are aware of the problems that were identified by the National Audit Office's report. We are considering methods of addressing those difficulties and I am waiting now for the report of the Public Accounts Committee, following which I shall, I hope, be in a position to make an announcement.

§ Mr. Page
rose—

§ Madam Speaker
I call Mr. Malcolm Moss.

§ Mr. Page
There is a resemblance, Madam Speaker, although my hon. Friend is not quite as good-looking.
In contrast to the carping question from the hon. Member for Cardiff, Central (Mr. Jones), does not the increase in manpower reflect to the credit of both the agency and the Government? Is not it a positive reaction to the National Audit Office report and the Public Accounts Committee inquiry in January this year? Will not the improvement allow closer co-operation between the Insolvency Service and the agencies, and make company directors more aware of their responsibilities, thus giving greater protection to the public, which we all want?

§ Mr. Hamilton
I agree with my hon. Friend and I pay a warm tribute to the staff employed by the Insolvency Service for the way in which they have. coped with the dramatic upturn in work in recent years. We must try to find more flexible means of taking on staff to cope with such peaks as well as troughs in the work. The consultancy studies presently being undertaken will help to do that and we want to be able to contract and expand the service according to the work available. Thus, we shall not have to take staff permanently on to the books who will be under-utilised at times when there is not enough work for them.