§ Mr. MitchellTo ask the Secretary of State for Trade and Industry how he defines the difference between responsible risk takers and culpable bankrupts for the purpose of implementing the recommendations of the Insolvency Working Party; and if he will estimate the proportion of each.[126035]
§ Dr. HowellsI am satisfied that there is a clear distinction to be drawn between individuals who are dishonest or whose conduct with regard to their creditors is irresponsible and those whose use of credit and treatment of their creditors is conscientious and above board. Examples of irresponsible conduct would be an individual continuing to trade and incur credit at a time when he or she knew themselves to be insolvent; or an individual consumer obtaining credit without any regard to his ability to repay the debts incurred. Information available from Official Receivers indicates that the very great majority of individuals subject to bankruptcy are neither dishonest nor irresponsible.
§ Mr. MitchellTo ask the Secretary of State for Trade and Industry on what basis he estimates that seven to 12 per cent. of bankrupts are culpable; and what relationship these percentages have to the findings of the Insolvency Service's Study of Business Failures in January and February 1999. [126040]
§ Dr. HowellsAn estimate of the number of bankrupts who may have been guilty of misconduct in relation to their creditors can be made by reference to the number of bankrupts reported by Official Receivers as having, prima facie, committed criminal offences; the number of bankrupts identified by Official Receivers as having committed criminal offences but in respect of whose affairs further investigation or prosecution would not, in the public interest, be warranted; and information obtained from Official Receivers as in their survey of Business Failures.
§ Mr. MitchellTo ask the Secretary of State for Trade and Industry how many(a) individuals and (b) firms are regulated by each of the bodies responsible for regulating the insolvency industry. [126484]
§ Dr. HowellsThe Insolvency authorising bodies are responsible for the authorisation of individuals as insolvency practitioners. Firms cannot be authorised. The numbers of individuals concerned are:
Number The Association of Chartered Certified Accountants 155 Insolvency Practitioners Association 330 The Institute of Chartered Accountants in England and Wales 784 The Institute of Chartered Accountants in Ireland 68 The Institute of Chartered Accountants of Scotland 156 The Law Society 196 The Law Society of Scotland 20 The Secretary of State 125
§ Mr. MitchellTo ask the Secretary of State for Trade and Industry what action his Department has taken over the report issued by Mr. Justice Ferris and his proposals for setting the fees of insolvency practitioners. [126486]
§ Dr. HowellsFollowing receipt of the first report by Mr. Justice Ferris, The Association of Business Recovery Professionals (formerly the Society of Practitioners of 139W Insolvency) issued preliminary guidance to its members on the possible format of application for fee approval. Further guidance is awaiting publication of the final report of the Ferns Working Party and the issue of a revised Statement of Insolvency Practice on remuneration of office holders. My Department is represented on the Working Party and is continuing to monitor the position.
§ Mr. MitchellTo ask the Secretary of State for Trade and Industry what inquiries his Department has made into(a) receiverships and (b) liquidations started more than 10 years ago but still not finalised; and how many liquidators come into this category. [126479]
§ Dr. HowellsThis information could be provided only at disproportionate cost.
§ Mr. MitchellTo ask the Secretary of State for Trade and Industry how many complaints about the conduct of the insolvency practitioners have been lodged with each of the bodies responsible for regulating the insolvency industry since 1997.[126485]
§ Dr. HowellsThe number of complaints about insolvency practitioners received between 1 January 1997 and 31 December 1999 for each authorising body is as follows:
Number Association of Chartered Certified Accountants 118 Insolvency Practitioners Association 347 Institute of Chartered Accountants in England and Wales 597 Institute of Charted Accountants in Ireland 23 Institute of Charted Accountants in Scotland 115 The Law Society 7 The Law Society of Scotland 0 The Secretary of State 132
§ Mr. MitchellTo ask the Secretary of State for Trade and Industry if he will set up an independent investigation into the administration and liquidation of(a) J. S. Bass & Co. Limited and (b) Exchange Travel.[126476]
§ Dr. HowellsNo. However, as I indicated in my recent letter to my hon. Friend, officials are in touch with the Institute of Chartered Accountants in England and Wales concerning the handling of the complaint about the insolvency practitioners in the Bass case.
§ Mr. MitchellTo ask the Secretary of State for Trade and Industry if he will place the comments received on the Insolvency Working Party's interim and final reports in the Library.[126482]
§ Dr. HowellsThe Insolvency Regulation Working Party was established by the insolvency authorising bodies and comments made to it were a matter for the Working Party and not for Ministers.
§ Mr. MitchellTo ask the Secretary of State for Trade and Industry if he will list the receiverships and liquidations begun more than 20 years ago and still not finalised.[126480]
§ Dr. HowellsThis information could be provided only at disproportionate cost.
140W
§ Mr. MitchellTo ask the Secretary of State for Trade and Industry if he will introduce legislation under which the receivers and liquidators will be required to owe a duty of care to all the stakeholders affected by their decisions.[126481]
§ Dr. HowellsI have no plans to do so.
§ Mr. MitchellTo ask the Secretary of State for Trade and Industry what action his Department has taken over the receivership of Heritage plc.[126490]
§ Dr. HowellsThe complaint about the receivers of Heritage plc was a matter for the Institute of Chartered Accountants in England and Wales, the authorising body of the practitioners concerned. The Institute found there to be no prima facie case of misconduct.
In view of continuing concerns expressed by the complainant, officials have been in touch with the Institute and are in the process of carrying out a review of the handling of the complaint.
§ Mr. MitchellTo ask the Secretary of State for Trade and Industry when the(a) Atlantic Computers, (b) Coloroll, (c) Barlow Clowes and (d) Stone Platt receiverships and liquidations began; when they were finalised; what fees have been collected by the insolvency practitioners; and if he will make a statement.[126478]
§ Dr. HowellsThe information requested is not immediately available. I will write to my hon. Friend about this matter and place a copy of that letter in the Libraries of the House.
§ Mr. MitchellTo ask the Secretary of State for Trade and Industry what proposals he has for expanding the supply of insolvency practitioners.[126489]
§ Dr. HowellsThe requirements to be fit and proper and to meet certain criteria as to education, practical training and experience are designed to ensure that authorisation will only be granted to individuals who can demonstrate a high standard of integrity and professionalism.
There are presently 1,834 authorised insolvency practitioners of whom some 1,270 are currently understood to take appointments.
The Insolvency Bill presently before Parliament provides for the Secretary of State to have the additional power to recognise a body so that it may authorise individuals to take appointments but only in the capacity of nominee or supervisor of a voluntary arrangement.
§ Mr. MitchellTo ask the Secretary of State for Trade and Industry what action(a) he and (b) the Recognised Professional Bodies have taken against the insolvency practitioners whose actions were highlighted in Channel 4's "Dispatches" programme broadcast on 19 June 1996.[126477]
§ Dr. HowellsThe relevant Recognised Professional Bodies were made aware of the programme at the time and I have no reason to doubt that any matters arising which related to the conduct of authorised insolvency practitioners would have been fully and thoroughly investigated by the bodies concerned.