SNP calls for probe into insolvency industry

THE SNP is calling for an investigation into the insolvency industry amid concerns that administrators are cashing in at the expense of creditors.

Business spokesman Mike Weir said his concerns were sparked by Christmas hamper firm Farepak, which collapsed in October 2006, owing 37 million to more than 119,000 savers.

Four years on, they are likely to recover just 5p in the pound, while the final bill for the administrators and their legal advisers could reach 3 million.

However, he said Farepak families were not alone in this problem.

"With as many as 50 businesses going bust every day, the insolvency gravy train is an opportunity for the administration industry to make vast sums out of the economic downturn."

Mr Weir added that there were thousands of cases of unresolved insolvencies, going back more than 20 years.