Cross-Border Insolvency Regulations 2006

I thank the Minister for his explanation of the regulations. Perhaps I should disclose an interest as having worked a long time ago in the insolvency department of what was then one of the big eight accounting firms. As my experience predates 1983, I cannot claim that it will colour my judgment on the regulations. I understand that, in the past, there have not been many instances of cross-border insolvency proceedings involving UK entities. In the future, too, utilisation of the regulations is expected to be infrequent. One supposes that that may rise with globalisation. As the Minister says, the regulations will apply only to insolvency proceedings relating to non-EU states. We understand that the equivalent EC regulation will take precedence if there is a conflict between the two, already being in place. We all hope that the effect of these regulations will be positive for Britain and British companies. They should facilitate the process of tracing assets overseas and contribute to reducing the cost of bringing insolvency proceedings in foreign countries. Parties may now be able to pursue claims where it would not previously have been worth while to do so. We hope that the rescue of businesses with assets in more than one jurisdiction will be rendered easier. I should be grateful for the Minister’s clarification on a couple of points. First, on the one hand, anyone from anywhere is now able to bring proceedings in UK courts under these regulations, even if they hail from a jurisdiction which has not implemented the model law; on the other hand, the right of UK entities to bring proceedings overseas will, we understand, be restricted to countries which have similarly signed up. Although I understand that there is already precedent under Section 426 of the Insolvency Act, to which the Minister referred, for such a non-reciprocal situation it would not appear to be particularly fair on our own businesses. What action is being taken to encourage other countries to adopt the model law? I hope that he will forgive me for pressing that question. He referred to the fact that the regulations themselves will encourage people but we are somewhat sceptical about whether that will be enough. Secondly, we understand that, as a result of EC legislation currently under preparation, the regulations are not to be extended to credit institutions and insurance companies. That is a huge sector and one with a history of insolvencies—one might mention, for example, BCCI. Can the Minister give the Committee an indication of when that will be satisfactorily resolved?