HC Deb 08 July 1991 vol 194 cc255-6W
Mr. Tim Smith

To ask the Secretary of State for Trade and Industry whether the Insolvency Service has now achieved a full realisation of the cash and estate accounting records up to 31 March.

Mr. Redwood

[holding answer 4 July 1991]: No. The Insolvency Service now estimates that work on the cash and estate accounting records to 31 March 1991 will be completed by end of July 1991. However, flowing from the problems outlined by the Comptroller and Auditor-General in his report on the insolvency services account for 1989–90 relating to the old accounting systems and the transfer of estate records to the new system, a full reconciliation may not be achievable. I have asked the inspector general and chief executive of the Insolvency Service, who is the agency accounting officer for the account, to let the hon. Member have a further report at end-July. In the meantime, the inspector general is advising the Comptroller and Auditor-General of the position. The new system is succeeding in eliminating many of the problems apparent in the old.

Mr. Gregory

To ask the Secretary of State for Trade and Industry (1) what is the average penalty imposed in the cases taken by the Insolvency Service; and if he will make a statement;

Mr. Redwood

[holding answer 5 July 1991]: The Department of Trade and Industry prosecutes a variety of offences following investigations by the Insolvency Service. Such prosecutions comprise offences for which, on conviction, both custodial and non-custodial sentences are imposed. It is therefore not possible to calculate an average penalty.

Every decision to prosecute is taken with legal advice and the lawyer will have regard to the code for Crown prosecutors issued by the Director of Public Prosecutions under section 10 of the Prosecution of Offences Act 1985. That code, in addition to providing criteria as to the sufficiency of evidence, contains criteria concerning whether the public interest requires a prosecution. One of the criteria is the likely penalty, and it is stated that the prosecutor should carefully consider how best the public interest would be served where a nominal penalty is likely.

Composite rate tax on building society interest
All amounts in £ million
Receipts in
1980–81 1981–82 1982–83 1983–84 1984–85 1985–86 1986–87 1987–88 1988–89 1989–90
IRS edition in:
1985 Not shown separately
1986 Not shown separately
1987 1,217 1,425 1,583 1,550 1,844 2,608 2,545

Mr. Gregory

To ask the Secretary of State for Trade and Industry when he last reviewed the code for Crown prosecutors regarding the Insolvency Service.

Mr. Redwood

[holding answer 5 July 1991]: Any revision of the code for Crown prosecutors is a matter for the Director of Public Prosecutions under section 10 of The Prosecution of Offences Act 1985.

The Insolvency Service has guidelines which, when read with the code for Crown prosecutors, gives more detailed guidance regarding the investigation of possible offences in insolvencies. These guidelines were reviewed by Ministers in June 1991.

Mr. Gregory

To ask the Secretary of State for Trade and Industry what is the annual cost of the Insolvency Service in Yorkshire; and if he will make a statement.

Mr. Redwood

Official receivers' offices located in Yorkshire are at Leeds and Sheffield. The running cost budgets for this financial year 1991–92 for those offices are £884,000 and £468,000 respectively.

The official receiver, Hull, and the official receiver, Stockton, also have responsibility in parts of Yorkshire. The running cost budgets for 1991–92 for those offices are £454,000 and £312,000 respectively.

Back to