Insolvency good, says DTI

Now, TS kind of understands that it’s better for a business to be in administration than to be insolvent. It’s a bit like comparing a trip to the local GP for a prescription to being wheeled into the morgue in a black bag.

However, upon the release of the latest insolvency quarterlies by the DTI (a body that must be extremely relieved by Labour’s victory last night, given the Tories were looking to give it the chop) it appears that the shed load of administrations just announced is good news.

The Insolvency Service top bod Desmond Flynn claimed that it is ‘encouraging to see that companies are using the administration procedures in increasing numbers’.

Erm, well perhaps it would be better if fewer companies had to use administration in the first place….

In all fairness, insolvencies have dropped by 7.4% in the first three months of 2005 compared to a year ago, so well done to that.