A North East business insolvency expert has welcomed new Government plans to tackle dishonest behaviour by company directors.
But Allan Kelly, North East chairman of insolvency trade body R3, said more remains to be done.
Kelly, who is also head of the Turnaround & Insolvency team with regional accountancy firm Tait Walker, was responding to measures outlined by Business Secretary Vince Cable (pictured), designed to provide “stronger deterrents” and “more robust sanctions” against the “rogue minority”.
While supporting the principle of making director disqualification a greater priority, however, Kelly believes that more needs to be done to turn theory into practice, and said a more ‘joined up’ approach was needed to tackle the issue.
He said: “There is still more work to do before reality matches rhetoric. More investment in the Insolvency Service is needed, as is reform of how rogue directors are reported, and unless the government is able to up its game, creditors – including small businesses and the taxman – will be exposed to people who are responsible for business failure after business failure.
“Budget cuts at the Insolvency Service are one major factor here - expertise and experience have fallen victim to staff cuts, and much more investment is needed if the Government is going to achieve its aims. Unfortunately, the Government’s approach to rogue directors is far from joined up.”