Séamus Brennan (Dublin South, Fianna Fail)

The findings of a major report entitled Do the Poor Pay More?, which was produced some time ago, and other research make it clear that poor people pay more for loans. Apart from banks, the Consumer Credit Act 1995 envisaged moneylenders as a sector. Under the Act, a person must charge a minimum of 23% to be considered a moneylender, as opposed to a financial institution or bank. The legislation does not set out any maximum limit. I instructed my officials to hold meetings with the Financial Regulator and such meetings are ongoing. I also instructed my officials to seek legal advice — that is being done — as to whether it is possible to amend the Consumer Credit Act in the forthcoming MABS legislation.

The MABS legislation will streamline MABS, give it national leadership and focus and, without interfering with the voluntary nature of MABS, which I am very keen to retain, bring a new professional national structure and leadership to the service. As this Bill travels through the Houses of the Oireachtas, I will be very anxious, if at all possible, to insert a section into it which will deal with this matter. Every time I think out loud, the Deputy opposite accuses me of doing just that, but I will probably not change my ways now.

One possibility is thrown up by the fact that the Financial Regulator grants an annual licence to every moneylender. We do not control interest rates but the Financial Regulator is allowed to take the level of interest rates into account in deciding whether to issue an annual licence. In theory at least, it is open to the Financial Regulator to decide that he does not like the rate of interest but whether this would be sufficient or would need to be combined with other matters affecting the application is the area on which I have sought advice.

I have been very transparent in this regard. I hope I do not raise people's hopes unnecessarily. At the same time, it is important that I am transparent in carrying out this kind of work. As soon as I receive very solid legal advice and we conclude our talks with the Financial Regulator, I will be able to decide whether a section can be inserted into the MABS Bill, which the Government is committed to bringing forward in the next few months, as the Deputy is aware.

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