§ Mr. Squireasked the Secretary of State for Trade and Industry whether Her Majesty's Government have any proposals to give greater protection to individuals paying in advance for goods and services.
§ Mr. HowardI have no further such proposals in mind. The special provisions in the Insolvency Act 1985 on the potential disqualification and personal liability of directors responsible for wrongful trading, which came into force last week (28 April), will give greater protection to individuals paying in advance for goods and services. The Government consider that these provisions will22W achieve the necessary balance but would he prepared to reexamine the need for further action if experience of the effectiveness of these provisions indicates that this is necessary.
I also take the view that action by the trade to improve existing protective schemes and to establish new voluntary schemes, in the ways suggested by the Director General of Fair Trading in his recent report on "The Protection of Consumer Prepayments", will be an effective means of achieving greater protection.