§ Mr. Austin MitchellTo ask the Secretary of State for Scotland what was the cost of processing individual insolvencies for the past seven years in terms of(a) payments to insolvency practitioners and (b) direct administrative expenses.
§ Lord James Douglas-HamiltonThe net cost of processing individual insolvencies in Scotland was as follows:
Year Payments to insolvency practitioners £ million Administrative expenses £ million 1987–88 0.42 0.09 1988–89 2.41 0.50 1989–90 7.52 0.73 1990–91 12.25 1.11 1991–92 18.50 1.20 1992–93 26.31 1.62 1993–94 24.60 1.64 From 1 April 1993, the administrative expenses include the costs of the Accountant in Bankruptcy acting as interim and permanent trustee under the provisions of the Bankruptcy (Scotland) Act 1993.
§ Mr. Austin MitchellTo ask the Secretary of State for Scotland what was the cost per case of processing individual insolvencies in Scotland in(a) 1992–93 and (b) 1993–94; what was the percentage change; and if he will make a statement on the reasons for the change.
§ Lord James Douglas-HamiltonThe average annual costs per live sequestration were £1,189 and £904 respectively in 1992–93 and 1993–94, a reduction of 24 per cent. Under the provisions of the Bankruptcy (Scotland) Act 1933, which were brought into effect on 1 April 1993, the costs of administering new sequestrations have been reduced and the costs of concluding existing cases also fell.