Chair of the Regulatory Reform Committee Stephen McPartland MP calls on the Government to bring forward proposals to reform the insolvency framework after raising concerns about the ability of the Insolvency Service to deal with large corporate failures such as Carillion.
Collapse of Carillion
Mr McPartland raised the issue with Cabinet Office Minister David Lidington during a meeting of the Liaison Committee ( PDF 403 KB) held on Wednesday to examine the cross-Government response to the collapse of Carillion.
He asked whether the Government was confident the Insolvency Service has the resources it needs and whether any opportunities were missed to support the orderly administration of Carillion rather than liquidation.
Following the meeting, Mr McPartland said:
"“It was reassuring to hear from the Minister that the Government is committed to supporting the Insolvency Service. However many of the basic insolvency procedures have remained largely unchanged since 2004 and there is a risk that this is making it harder for UK-based companies to avoid insolvency.
The Government needs to respond to the consultation it held 18 months ago and come forward with some proposals to reform the insolvency framework to ensure the UK remains an attractive place for corporate restructuring."