Martin Cullen (Waterford, Fianna Fail)

I propose to take Questions Nos. 106, 146 and 162 together.

The Money Advice and Budgeting Service, MABS, is the main Government funded service which provides assistance to people who are over-indebted and need help and advice in coping with debt problems. There are 53 independent companies nationwide with over 240 money advice staff operating the service.

In 2007, MABS provided services to almost 12,500 new clients throughout the country. In addition, some 2,600 people sought information on budgeting and money management. The MABS national telephone helpline, which was launched in October 2007, has dealt to date with approximately 1,700 calls. The number of active cases receiving ongoing support in managing their finances and resolving their debt difficulties at the end of the year was 19,200. Almost €18 million has been provided in 2008 to assist MABS in dealing with its workload.

The issues that give rise to problems of over-indebtedness for people are highly complex. Research shows that lack of information about money management can be a contributory factor in many cases. The cost and availability of credit for people on low incomes and the barriers they face in accessing mainstream and cheap forms of credit add to the difficulties people encounter in managing their finances. MABS is making a unique and expert contribution to meeting the needs of people with debt difficulties in today's society. This includes promoting greater awareness of household budgeting and shaping the strategies to ensure greater financial inclusion, especially those of service providers, such as banks and credit unions.

In line with the programme for Government, I am developing proposals to establish a new structure for the future of the MABS. I intend to bring the proposals to the Government in the coming months. My proposals will build on the best features of the MABS model of service to the public. They involve the continuation of local voluntary involvement in the MABS service, with strong national leadership to ensure a high quality, co-ordinated budgeting and advice service that represents value for money for the taxpayers' investment and is geared to meet the challenges posed by the changing face of debt in Ireland.

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