Pat Breen (Clare, Fine Gael)

As well as being in mortgage arrears many people have substantial unsecured debts and are struggling to pay off their debts because their incomes have reduced substantially since they took on the original debt. The debt settlement arrangements provided for in the Bill will allow such persons to apply to the insolvency service for a protective certificate while they are preparing a debt settlement arrangement. The biggest complaint of my constituents in this category concerns the unwillingness of the lending institutions to give them adequate time to sort out their affairs. This proposal will give people some breathing space as they try to resolve their situation.

The protection which the Bill offers for principal private residences in cases where individuals have entered into a personal insolvency agreement is something for which people have been waiting for some time. Repossession orders should be a thing of the past. Repossessions are in nobody's interests, especially in a period when house prices are falling. While the lender might recoup some finance from the sale of a repossessed house, the entire process is extremely traumatic for the families involved and in any case it is the taxpayer who ends up picking up the tab for those who have to be rehoused by local authorities or through the payment of rent supplement.

The family home is hugely important to Irish people. It may be as a result of historical experiences that this country is ranked sixth in the world in home ownership, with economies such as the United Kingdom, the United States and Germany. The statutory duty placed on the insolvency trustee ensures that in preparing the personal insolvency agreement the debtor will be allowed to remain in his or her own house. That is a significant move which will ease worries for families living with the threat of eviction.

I wish to address the proposals set out for the new insolvency service. It is proposed that the necessary resources be given to the service in order that it can deal with the scale of the applications likely to come before it once the legislation is enacted. I would like to see the MABS involved in the process. I welcome the Minister's commitment that it will continue to have a valuable role in assisting and advising people with debt problems. I cannot speak highly enough of the professional advice and financial statements produced by it to support people in trouble and I am pleased that it will have a role in the new system.

It is important that the financial institutions buy into the new insolvency legislation. I appeal to them to embrace it and work with us in that regard. I meet families every day who are struggling to pay their debts and I am conscious of the pain and upset they must endure. The legislation provides a lifeline for them. People are most anxious to have the provisions in the Bill enacted as soon as possible. I, therefore, appeal to the House to support the legislation.

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