AiB cuts costs for second year

AiB, for the second year, has cut costs to the public purse for debt relief services in Scotland, up 8 per cent on savings made in 2008-9 to 33 per cent last year.

The Annual Report and Acounts for 2009-10, released today, highlights AiB's achievements in improving and streamlining our operations in line with government's continuing commitment to finding greater efficiencies while maintaining core public services - a pledge that underpins the Efficient Government Programme and our commitment to recovering costs from the process.

Minister for Community Safety Fergus Ewing said:

"AiB has an important role to play in determining the financial health of our country. Any evidence of increased public sector efficiencies is to be welcomed and the release of AiB's Annual Report and Accounts 2009-10 makes it clear that the AiB is trying and succeeding in doing that.

"Bankruptcy is not an easy option and never will be. Debt is a reality that most people will face in their lifetime.

"Our commitment to rebuild Scotland's economy means that we must also commit to helping people who face taking this difficult path. But to do so without burdening our local businesses and industries. Supporting those in trouble is not about wiping debts, it is about developing a package of solutions to benefit everyone involved."

Rosemary Winter-Scott, The Accountant in Bankruptcy and Agency Chief Executive said:

"I am delighted to be able to publish the Agency's Annual Report for 2009/10 - the first since I took up office.

"The report reflects a very busy year with many achievements across the whole business. I am particularly pleased that we have been able to achieve a further year on year reduction on our draw on the public purse - particularly at a time when public spending is under great scrutiny.

"But of course our activity is not only about looking at efficiencies. Another proud milestone for the Agency in 2009/10 was the passage through Parliament of the Home Owner and Debtor Protection (Scotland) Act 2010 which, when commenced later this year, will increase protection for the home and allow much needed debt relief through bankruptcy for a wider group of people.

"And finally, I wholeheartedly acknowledge that none of our achievements, big or small, would be possible without the commitment and hard work of my staff and Board and the willingness of all our stakeholders to contribute to meaningful discussion around a wide range of topics."

Key facts and figures from the Annual Report include:

• Income increased by 6% to £8.162m in 2009-10, (from £7.688m in 2008-09) while net operating costs (not including capital expenditure) decreased to £4.296m (from £4.777m in 2008-09). This delivered a 33.5% reduction in overall cost to the public purse (from £5.533m in 2008-09 to £3.678m in 2009-10).
• The new contract for Insolvency Services achieved savings of £1.41m at the end of its first year, reported under the Efficient Government Programme against a target of £1.35m.
• The Low Income Low Asset (LILA) route into bankruptcy continued to impact on the number of bankruptcy awards with a total of 13,810 bankruptcy awards made in 2009-10, a 6% drop in the first year's level, it remains 124% of the 2007-08 total.
• Protected Trust Deeds (PTDs) rose by 20% to 9,188 (7,633 in 2008-09).
• 1,417 Debt Payment Programmes were agreed during 2009-10 under the Debt Arrangement Scheme (DAS). An increase of 56% (from 908 in 2008-09). The overall value of debts included in Debt Payment Programmes (DPPs) rose by 10% to £34m from £31m in 2008-09.
• The agency conducted its first customer satisfaction survey achieving a rating of 93%.

The full Annual Report and Accounts 2009-10 can be found by clicking the link provided.