Andrew Turner, the Island’s MP, has said that the increase in bankruptcies during the current economic crisis points to many ‘personal tragedies’ and are linked to the economic situation over the last 18 months. Figures released by the Ministry of Justice show that, in the Newport County Court, a total of 56 people applied to make themselves bankrupt in the 3rd Quarter of 2009 (an increase of 24% over the previous year) and 4 people faced bankruptcy petitions submitted by people they owed money to (there were none in the same period in 2008). The total number of bankruptcy petitions issued in England and Wales jumped from 19,288 (Q3 – 2008) to 21,480 (Q3 – 2009) an increase of 11%.

It was announced last week, by the Office of National Statistics, that inflation (measured by the Consumer Price Index (CPI)) jumped to 2.9% in December. Today it was announced that for the first time in 18 months the economy grew – but only by 0.1%.

Mr Turner said :

“These bankruptcy statistics represent personal tragedies. Some of these people will be sole traders who have had to call it a day and give up their businesses. When a small trader goes under it can have a knock-on effect on local people and businesses they owe money to. Added to the spiralling inflation rate – which doesn’t even take into account the increase in VAT in January – it is clear there are some very difficult times ahead. These sad statistics are linked to the last 18 months of recession in the economy.”

Mr Turner added:

“We need to get the economy back under control and it is imperative that Government spending is pruned as soon as possible. The Government is borrowing money at a rate of around £6,000 every second. Every five seconds, the Government borrows more than the average British person earns in a year. . The Chancellor of the Exchequer, Alastair Darling MP clearly recognises that we need to bring that under control, and even the Liberal Democrats seem to have finally got the message. However, the Prime Minister still seems to be in denial about the way in which the economy has been mishandled in recent years.

“The end of the longest recession and deepest recession since the war is welcome news – but the figures show it is very fragile. We need a plan that reduces the deficit, keeps interest and mortgage rates low, supports businesses and supports economic recovery.”

END Contact : Andrew Turner’s office 01983 530808

Bankrupty figures Q3 2009 : http://www.justice.gov.uk/publications/companywindingupandbankruptcy.htm