Diana Johnson MP leads delegation to Minister over Hull Insolvency Office closure

Diana Johnson MP is to lead a delegation to discuss the proposed closure of Hull's Insolvency Office with a Government Minister.

The Hull North Labour MP recently gained agreement for the meeting from Jenny Willott MP, the Lib Dem Minister for Employment Relations and Consumer Affairs in the Department for Business, Innovation and Skills.

 

 

The delegation takes place on Tuesday 6 April, 10.30am at the Department of Business, innovation and Skills.

 

 

The closure of Hull Official Receiver's Office was announced in March, after only three weeks of 'consultation'. This office has approximately 45 staff and is worth over £1m per year to Hull's local economy. The office is due to close in October, with its work being transferred to Leeds.

 

 

Staff at the Hull office have over 600 years of collective insolvency experience. Last year this saved the economy over £2.5m, as they achieved the disqualification of 27 directors.



As well as questions about whether this closure will actually result in savings for tax-payers, after redundancy, recruitment, training and other costs have been factored in, concerns have also been expressed that it will increase the problem of 'bankruptcy tourism'.

 

 

Diana Johnson MP said: "At a time when we've worked so hard locally to bring investment and jobs into Hull, it's extremely unhelpful to our efforts for another £1m to be taken out of our local economy on top of all the other unfair Coalition cuts that we've been clobbered by by closing the Hull Insolvency Office.

 

 

"One aspect of the policy of 'rebalancing the economy', that the Coalition always say they support, is bringing staff from Whitehall departments to areas such as Hull not taking them away.

 

 

"It appears that closing Hull's Insolvency Office will not save money for tax-payers, at the same time as being another unhelpful blow from Whitehall to our efforts to regenerate Hull."