by Alan McGuinness

Plans to close the insolvency office in Chatham have come under attack.

Labour and Conservative politicians have called for the Insolvency Service to reconsider plans to merge the office with one based in Whitstable, claiming it would have far reaching effects given Medway’s growing debt problem.

The average debt of people going to the Towns’ Citizens Advice Bureau is £43,000 and the charity is to undertake a survey to try and get a grip on the problem.

CAB chief executive Dan McDonald said the Chatham office had good transport links and the space to develop into a regional hub.

He said: "The service is looking to develop regional centres and what better place than Medway for such a centre?"

The move also puts more than 30 jobs at risk at the Chatham Maritime office.

The service deals with people who declare themselves as bankrupt and the closest office is in Whitstable.

The consultation finished last month and a decision is due soon.

Cllr Vince Maple (pictured), Labour Group leader on Medway Council has written to Business Secretary Vince Cable claiming deciding to close the office would "come at the worst possible time". He wrote: "In particular, the loss of more than 30 jobs to the Medway economy would be a deep blow in these difficult times.

"Clearly the level of service, which I understand included a large number of face-to-face interviews and visitors, would be greatly reduced, the impact of which would be far reaching across our community."

Conservative MPs Tracey Crouch and Mark Reckless have also called on the Insolvency Service to think again.

In a joint statement they said the consultation "represents a poor deal for Medway". They said: "It would deprive people in Medway, an area with well publicised debt issues, of a vital debt service."

The Insolvency Service said there is a "sound financial case" in pursuing the closure of the Chatham office. A document setting out the reasons for the consultation states: "Whilst there will be costs associated with relocating staff and closing an office these will be offset by the longer term savings of giving up the building.

"However, in considering the closure of any of our offices we will need to strike a balance between the impact upon the users and the efficiency gains and costs."