Oireachtas Joint and Select Committees

Wednesday, 5 February 2014

Joint Oireachtas Committee on Justice, Defence and Equality

Small Claims and Payment Procedures: Motion

12:20 pm

Photo of Ivana BacikIvana Bacik (Independent) | Oireachtas source

I thank the Minister for setting this out clearly. All of us recognise the desirability of the changes. Like many of us, I am concerned about the small number who have taken up the EU small claims procedure in Ireland. Only 44 such cases came before Dublin District Court last year and we do not know what types of cases are involved. Presumably, the low usage of the regulation is not unique to Ireland. The Commission has proposed these amendments to make it more broadly used across member states. I welcome most of the changes, particularly the change to cover cases where both parties are domiciled in the same member state but there is a cross-border element. One can imagine that, for example, in the context of holidays, which are the focus of many domestic small claims disputes, where two Irish people go on holiday in another member state and an issue arises with the provider of accommodation or services there, that this would be an attractive route for them to pursue a claim. Is there low usage of the regulation generally in the EU or is that unique to Ireland?

I refer to the increase in the threshold for a claim to €10,000. I agree with the Minister that this is desirable and necessary, given the low take-up and given the cost, for example, of holidays. A threshold of €2,000 is low. If we support the proposal, does that mean we support the threshold of €10,000 or are we supporting the negotiations to increase it and it may not ultimately be as much as €10,000 because of differing views among member states? It could, for example, be €5,000 or €6,000. The Minister also said the Courts Service has expressed concern about the desirability of an increase. Has the service sufficient capacity to deal with these claims? According to the briefing from the Library and Research Service, the impact of the moratorium and difficulties with staffing may impact on capacity but that should not be a factor if we believe it is desirable to increase the threshold. Can we be sure the service will cope with the volume of claims if the number increases because of the change to the threshold?

The Commission's estimate of the reduction in costs is based on an assumption that 50% of court cases would be filed under the European small claims procedure. On what basis is it making that assessment? Is that based on the take-up of the procedure to date using the lower threshold or has a more scientific method been used? It would be wonderful if that cost saving could be made and it would be welcomed by both small businesses and consumers. If the threshold was reduced from €10,000, there would be presumably be fewer claims and a lower saving.

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