Michael Ahern (Cork East, Fianna Fail)

As we all know, the economic climate has changed radically during the past year or so, causing great difficulties for many people in meeting financial obligations. Like other Members, I, too, have received representations from constituents seeking help and assistance in re-organising their finances. The pressure on families who cannot meet their repayments is real and palpable and is causing great anxiety. I believe the Bill proposed by Deputy Charles Flanagan is an attempt to relieve this anxiety and pressure. While it is well meaning, it does not take into account legislation on this issue already on the Statute Book.

The proposal to establish a debt collection regulator is not a wise one and would require extra finance and staffing for the Financial Regulator and Garda Síochána. According to the Bill, everyone, including debt collection agencies, garage owners, the ESB, Bord Gáis, plumbers and carpenters, would, to collect debts, have to obtain a licence, get clearance from the Garda and obtain a tax clearance certificate. This is so over the top as to be unworkable. In addition, Deputy Flanagan's failure to define in the Bill what constitutes "a debt collector" is sloppy drafting.

The recapitalisation scheme introduced in February 2009 includes a new code of conduct to assuage public concern in regard to action by debt collectors on mortgage arrears. I believe banks and building societies are dealing sympathetically with people encountering difficulties in this area. Concern in regard to strong arm tactics and intimidation of persons owing money has been highlighted in the newspapers and elsewhere. As I stated earlier, Deputy Flanagan's Bill is an attempt to counteract such behaviour. However, the Deputy has failed to acknowledge that the Non-Fatal Offences Against the Persons Act 1997 deals with issues such as assault, intimidation of the demand of money with menace. Section 11 of that Act provides that it is an offence to make demands for payment of debts under threat. It is clear that collection of debts by threat or harassment is not legal and every person so threatened should report the matter to the Garda Síochana.

I am interested to know if Deputy Flanagan speaks against Fine Gael policy in seeking the establishment of another quango. Any person in debt should contact his or her relevant bank or building society and should not leave such matters on the long finger. He or she should also contact the Money Advice and Budgetary Service, MABS, of the Department of Social and Family Affairs which has and continues to provide a crucial service for people in financial difficulty needing help and advice. It has proved itself to be the best way of achieving a good result for debtor and creditor.

I believe the Bill is considerably lacking. However, I thank Deputy Flanagan for bringing it before the House as it provides Members with an opportunity to set out the laws in this area and to state what agencies are available to assist people in difficulty.

See this speech in context