Róisín Shortall (Dublin North West, Labour)

There is no doubt that MABS provides a very worthwhile service throughout the community. I was disappointed to note that the legislation to put this on a statutory footing will not be ready until next year. It has been promised for some time and it is regrettable there is yet a further delay.

My question is not about MABS but rather that moneylenders can legitimately charge exorbitant interest rates of up to 188% which represents about ten times the level of interest charged on credit cards. People and families on low incomes who are in a difficult financial situation and who need to obtain short-term loans quickly are forced into the hands of moneylenders. I am referring to legal moneylenders as I have not even begun to discuss the issue of illegal moneylenders. Legal moneylenders can legitimately charge up to 188% interest which is scandalous. This problem has been identified by a number of agencies working in this area. It has been discussed at length by the Minister's predecessor, Deputy Séamus Brennan, who last year and earlier this year gave a series of interviews in which he promised to take action in this area and to work with the Financial Regulator and the Department of Finance to curb the level of interest that can legally be charged. Yet, there has been no action — it is all promises and no action. In light of the comments made by the Minister in the media in the past week, I ask him to state what action he intends to take to limit finally the level of interest that can be charged to these vulnerable families who have no choice but to go to moneylenders in order to gain access to short-term credit.

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