Oral question asked in the House of Commons, by Tom Brake (Liberal Democrat). It was answered on Thursday, 30 November 2006 on behalf of the Department of Trade and Industry.

Farepak

Question: I thank the Minister for his response, although whether the inquiry will report before Christmas remains unclear, certainly to Farepak customers. Will he confirm that evidence of wrongdoing by directors will lead to criminal proceedings against them? The Secretary of State for Northern Ireland appears to have advocated a boycott of HBOS for its sad involvement in the affair. Does he support that?

Answer: As a politician, the hon. Gentleman is entitled to make clever remarks. However, if he wants me to do the same in respect of HBOS, he must accept responsibility for the fact that that would mean that any culpability on HBOS’ part found by the investigation could not be taken to court by the prosecutor. My job is not about taking sides; it is about ensuring that there is a proper investigation and action is taken if illegality is found. By all means let the hon. Gentleman seek a headline, but my job is better than that. My job is to seek the truth of the matter, and to take action if that is necessary. After all, the Government sent the investigation branch in within hours of Farepak’s collapse. In normal circumstances, the investigation branch does not go into a collapsed company until after the administrator’s investigation. The fact that the Government took the unprecedented step of sending the investigation branch in so soon, by agreement with the administrator, shows how seriously we take this matter. I hope that hon. Members realise that, and that clever off-the-cuff remarks are not helpful.

Secondary information

Type: Oral question
Reference: 453 c1204
Session: 2006-07
Oral question type: 1st Supplementary
Chamber / Committee: House of Commons chamber
Subjects: Disclosure of information Criminal proceedings Companies Inquiries Insolvency Farepak
Link: View this Oral question on www.publications.parliament.uk