§ Mr. GregoryTo ask the Secretary of State for Trade and Industry how many cases the Insolvency Service has decided not to prosecute; and for what reasons.
§ Mr. RedwoodOfficial receivers in the Insolvency Service submit reports to the Department of Trade and Industry where investigations have shown that criminal offences appear to have been committed. After vetting by the service they are forwarded to the investigation division of the Department with a view to prosecution. Criminal296W proceedings are normally instituted by the Secretary of State although a small number of cases are referred to the Serious Fraud Office or the Crown prosecution service. In considering whether criminal proceedings should be instituted, the principles and criteria laid down in the code for Crown prosecutors are applied, and the prosecutor considers whether he is satisfied that there is admissible, substantial and reliable evidence that a criminal offence known to the law has been committed by an identifiable person and, if he is so satisfied, whether the public interest requires a prosecution. In cases where these criteria are not met, criminal proceedings will not be instituted.
During 1990 official receivers submitted 569 reports —627 in 1989—alleging that criminal offences had been committed. During the year convictions were obtained in 290 cases—352 in 1989—resulting in 309 persons being convicted—388 in 1989—of 769 different offences—67l in 1989. Additionally 94 warning letters were issued—107 in 1989—to individuals where there was evidence of an offence having been committed but where it was not considered that proceeding with a prosecution would be in the public interest During 1990 official receivers also assisted the police or other investigatory authorities in 412 criminal investigations. There were 166 persons convicted during the year in such cases.
§ Mr. GregoryTo ask the Secretary of State for Trade and Industry how many officials in the Insolvency Service are qualified in(a) law and (b) accountancy; and if he will make a statement.
§ Mr. RedwoodThe latest figures available show that 632 officials in the Insolvency Service have studied for accountancy or allied qualifications. Of these, 84 are fully qualified, 14 will be shortly sitting their final examinations and others are still studying. Additionally, a number of officers are also members of the Insolvency Practitioners Association. Some entrants to the Insolvence Service have law degrees, but there are no fully qualified lawyers. Such legal expertise as is required is provided by the solicitors division of the Department of Trade and Industry.
§ Mr. GregoryTo ask the Secretary of State for Trade and Industry what is the average time period taken by the Insolvency Service before it initiates legal action; and if he will make a statement.
§ Mr. RedwoodThe Insolvency Service initiates legal action based on reports submitted by official receivers where the reports allege that criminal offences have been committed or where a director's conduct is such that he is unfit to be a director of a company and an application should be made for him to be disqualified. In both cases official receivers are targeted to submit reports within 10 months of the winding-up orders in at least 80 per cent. of cases identified for investigation.
Where reports alleging criminal offences are submitted by the Insolvency Service to the investigations division of the Department of Trade and Industry with a view to prosecution, further investigation to establish whether there is admissible, substantial and reliable evidence that a criminal offence known to the law has been committed by an identifiable person is frequently necessary. In all cases where it is decided that the criteria for prosecution laid down in the code for Crown prosecutors are met, the objective is to institute criminal proceedings within four 297W weeks of that decision being taken where the case is to be taken summarily. Where the case is to be taken on indictment, the period is eight weeks.
§ Mr. GregoryTo ask the Secretary of State for Trade and Industry if he will give the average age of staff employed in the Insolvency Service.
§ Mr. RedwoodThis information can be obtained only at disproportionate cost.