Insolvency Service

HC Deb 21 June 1995 vol 262 cc308-9W

Mr. Hargreaves

To ask the President of the Board of Trade what targets he has set the Insolvency Service executive agency for 1995–96. [30596]

Mr. Heseltine

Against the Insolvency Service's business plan assumption of a further reduction in the number of compulsory insolvencies to 25,000 in 1995–96, I have set it the target of closing 35,000 cases. Taken together with the number closed in 1994–95, this will mean that nearly 90,000 case closures will have been completed by the service in two years. I also expect the service to continue to place increased emphasis on investigative work and hence exceed the number of disqualification proceedings commenced in 1994–95–930—itself an increase of 100 per cent. on 1993–94.

In addition, I have set the service the following quality of service targets for 1995–96: —to report to creditors on assets and liabilities within eight weeks in at least 90 per cent. of all cases; and within 12 weeks in 98 per cent. of all cases; —to hold the initial meeting of creditors within 12 weeks in at least 90 per cent. of all cases; and within four months in 98 per cent. of all cases; —to submit reports within 10 months in at least 90 per cent. of bankruptcy cases and 80 per cent. of company liquidation cases where there is evidence of criminality; —to submit disqualification reports within 15 months in at least 80 per cent. of cases where there is evidence of unfit conduct by directors; —to check and action at least 95 per cent. of payment requisitions within five days or by the due date; —to reduce by at least 10 per cent. the proportion of open cases that are more than 36 months old, so that there are no more than 1,900 such cases concerned at 31 March 1996.

The service is also required to reduce its unit cost of administering bankruptcy and compulsory liquidation cases by 3 per cent.

In addition, I expect the chief executive of the service to continue to reply within 10 working days to all letters from Members of Parliament delegated to him for reply and to produce audited commercial-style accounts for 1995–96.

I expect the service to complete its contracting-out exercise by 31 March 1996.