THE PUBLIC TRUSTEE (Hansard, 20 May 1982)

§ The Lord Chancellor (Lord Hailsham of Saint Marylebone)

A review of the financial prospects of the Public Trustee has now been completed. Until now, taking one year with another, the Public Trustee has been able to discharge his statutory obligation to cover his costs from revenue. This, however, is likely to become increasingly difficult as, for various financial and social reasons, the overall volume of business declines, since inherited commitments will remain, including a continuing legal obligation to accept minor and unprofitable trusts.

The review has identified a number of measures to improve the economy and efficiency of the office. These will be put in hand forthwith, and should help the Public Trustee to continue to meet his statutory financial objective in the period immediately ahead. They include the acquisition of a computer to deal with accounting arrangements, greater use of unitised 871WA investment, particularly for small trusts, and a restructuring of fee scales.

Looking further into the future, however, while it is considered that there will always be a need for a "trustee of last resort", it is clear that the business of the Public Trustee is contracting to a point at which it will eventually be impossible to justify an office with an independent existence of its own. At that stage, the most promising possibility would appear to be to combine the office with that of the Official Solicitor, who already undertakes certain trustee work when appointed by the court. Instructions have been given that work be put in hand to consider how and when such an amalgamation could be achieved.

The amalgamation would not affect the statutory functions of the Public Trustee, and would not affect the position of any of the trusts or estates for which the Public Trustee now acts or may act in the future.