Aim is to close legal loophole

A paradox of life is that failure is often necessary for success. If at first you don’t succeed, try, try and try again. The same applies in business.

Some of our greatest entrepreneurs started with a great idea but no real means to make it work. They risked everything and sometimes went bankrupt, but some succeeded not only beyond their wildest dreams but to the wider benefit of society through new jobs, services and goods.

However, other company directors are simply con artists on the make and determined to rip people off. This is why the law should crack down on rogue directors.

The government seems divided on this. One department wants deterrents and sanctions but another, in trying to reduce the costs of litigation, could make it more difficult to tackle dodgy directors.

If current arrangements expire in April, insolvency professionals tell me they will find it much more difficult to deal with dodgy directors. There could be huge costs for those owed money by failing businesses. The taxpayer will be sold short too. Maybe to the tune of up to £200m.

I am working with insolvency practitioners to close this loophole and have tabled a Commons motion to flush out debate before it is too late.

Failure is sometimes honourable but ministers have been warned that their divisions would be an early and needless gift for dishonourable dealers.

Ministers should get their act together.