Debate contribution: Insolvency (Amendment) Bill: Final Stage

Debate contribution by Dr Caoimhe Archibald on 24 March 2026.

MLA

Dr Caoimhe Archibald

Party at the time

Sinn Féin

Date

24 March 2026

Type

Debate contribution (made as a minister)

Business

Executive Committee Business

Heading

Insolvency (Amendment) Bill: Final Stage

Assembly identifier

Official Report component 5463050

Read the official Assembly record

Text

I beg to move

Go raibh maith agat, a Leas-Cheann Comhairle.

Today marks an important moment. By bringing the Bill to its Final Stage, the Assembly and my Department demonstrate our shared commitment to keeping our insolvency framework modern, responsible and fully equipped to meet the evolving needs of our economy. Over the years, the Assembly has always acted with purpose in this important area that supports our local citizens and economy. In 2010, Members supported the creation of our debt relief scheme, an invaluable route for people facing burdensome debt. It removed the need for costly court proceedings for those with lower levels of debt. Latterly, and in recognising the cost-of-living pressures faced by many, we have abolished the application fee for that scheme altogether. It is now entirely free for those who qualify, relieving the stress of problem debt and allowing a fresh start. In 2016, the Assembly enacted a further major reform by reshaping the authorisation and regulation of insolvency practitioners, strengthening the standards, oversight and professionalism of those working in that critical field. The Bill takes a different approach. It does not create new schemes or make significant changes that require additional expenditure; instead, it fine-tunes and updates existing law so that insolvency procedures, whether for individuals, companies or partnerships, can be carried out more efficiently and effectively, with better outcomes for creditors. While insolvency levels remain modest here relative to the size of our economy, the consequences of insolvency always ripple far beyond the business or individual involved, affecting employees, customers, suppliers and the wider economic landscape. That is why a modern, streamlined system is so important. The Bill introduces around 30 targeted improvements. Each may appear modest in isolation, but, together, they deliver meaningful modernisation. I will not elaborate on every modification, but I will address several of the key provisions. For example, for companies in administration, the Bill helps to ensure that the process genuinely supports rescue, where possible. It prevents the misuse of winding-up petitions to block the appointment of administrators and allows creditors to extend an administrator's term more easily to enhance the potential for rescue. Administrators will gain powers to pursue directors who are guilty of fraudulent or wrongful trading to provide compensation to those who have suffered financial loss. Crucially, the Bill takes a new route for those actions to be taken forward with the support of specialist firms. That will remove the financial risks that often deter administrators or creditors. That means that misconduct can be tackled more consistently, sending a clear message that wrongdoing will have consequences. We are modernising processes, too. Creditors will no longer need to attend physical meetings unless they choose to. Remote participation will be the norm. Insolvency practitioners will be freed from outdated formalities that add costs but no value, with the savings redirected to creditors. Small creditors owed less than £1,000 will be paid more swiftly, without having to complete complex claims. The Bill provides extra protections for struggling businesses, guaranteeing access to essential supplies, including IT services, to improve their chances of recovery. My Department's insolvency service will have direct access to all the information that it needs for investigating director misconduct efficiently and comprehensively, eliminating the need to rely on third parties. Throughout the development of the Bill, engagement with insolvency practitioners and stakeholders has been positive and constructive. They are eager to see these reforms in place, and rightly so. The changes will make our system quicker, clearer and fairer for everyone involved. The Assembly has a strong record of thoughtful and effective action on insolvency. Today, we have the opportunity to build on that record. I commend the Insolvency (Amendment) Bill to the House.

617 words. Text as published by the Northern Ireland Assembly.

Assessment

Not flagged

Jev’s structured answers

Assessed 21 October 2026 at 15:15 UTC by jev-1.13.0 (requested as typesafe/jev) under rubric 2026.10-r9, methodology 1.9.

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