Meeting of the Parliament 06 February 2024
The question of the discharge of trustees was alluded to by the committee’s convener. The Institute of Chartered Accountants of Scotland told us in evidence that it would like trustees to be able to be discharged once they had taken all reasonable steps to deal with unco-operative debtors who could not be found. Otherwise, we end up with trustees having to hold a position indefinitely, despite the fact that they cannot take any action because they cannot contact the debtor. That seems a sensible reform and I encourage the Scottish Government to take it further.
Secondly, there is an issue in the number of days during which a petition for bankruptcy can be served. As the law stands, a petition must be served no more than 14 days and no fewer than six days before a hearing, giving an eight-day window. Evidence from the Society of Messengers-at-Arms and Sheriff Officers was that that creates a practical issue for it, particularly when dealing with debtors who live in remote and rural areas such as the Scottish Highlands. It has suggested extending that window to 21 days. That seems a sensible and practical change that could be made.
Thirdly, we heard some evidence about the arrestee’s duty of disclosure. The bill requires arrestees to respond to all attempts to arrest wages and accounts. That will present significant resource implications for institutions including banks. The NatWest Group suggested an alternative approach that might reduce the administrative burden, and I hope that the Scottish Government will look at that.
The bill is a relatively modest and welcome piece of legislation. There are reforms in it that are necessary and that we would like to be progressed, and I hope that the Scottish Government will work with stakeholders and with the committee to ensure that our on-going concerns—in particular, on the operation of the mental health moratorium—are addressed. I am pleased to say that the Scottish Conservatives will support the general principles of the bill at stage 1.
15:03