I add my voice to the debate here this evening on the Private Members' Bill proposed by Deputy Charles Flanagan to address the issue of debt collection and the regulation of debt collectors. It is strange the Deputy is not in the Chamber to hear the views expressed on the Bill. If a Minister introduced a Bill, a number of Deputies on the other side would be very quick to highlight it he or she were not present to listen to the views expressed.

All of us in this House are well aware of the increasing financial strain that some people are enduring. There is undoubtedly unanimous understanding for those that find themselves in that situation. The current economic turbulence throughout the world has made it difficult for some businesses to survive and for some ordinary individuals to keep their heads above water financially. This has been aggravated by the availability of credit in recent years. Many have been living beyond their means and unfortunately, some are now experiencing an inability to meet loan repayments. Any support that can be provided to such people is very welcome.

I welcome the arrival of Deputy Charles Flanagan now. I commend the huge strides that have been made in assisting people in such situations by the Money Advice and Budgeting Service, which provides ongoing assistance to people who find themselves in financial difficulty and come forward seeking advice and help. Its contribution is invaluable. However, given that its work is limited to those who come forward to seek help, I would urge anybody in financial difficulty to come forward to be assisted by MABS. It is foolish for any individual or business to ignore financial trouble as help is available.

I welcome any proposal in this House on the matter and I commend Deputy Flanagan on his contribution. Unfortunately, the proposed Bill is flawed to say the least. The intended purpose of the Bill is to regulate the issuing of licenses to conduct debt collection activities. This in effect means that those who wish to administer the collection of debt would need to register with the Financial Regulator and be vetted by the Garda Síochána in order to obtain a licence to collect debt. They would also need to obtain a tax clearance certificate from the Revenue Commissioners. The regulator would need the power to refuse, revoke or suspend licenses at any time, and would be obliged to investigate complaints made by any debtor against a licensee.

This Bill falls down in many respects. As the Financial Regulator's remit is confined to financial services, it is not its duty to regulate debt collection. Adding this type of responsibility to the remit of the Financial Regulator would generate all types of difficulty, not least a serious impact on its expertise and resources. There would of course be serious financial implications in this type of activity for the Financial Regulator and the Garda Síochána. Given the current economic circumstances, this would not be good news.

On deeper analysis of the proposed Bill, it is difficult to ascertain if a person or company operating on their own account would be included in this proposal. That is ludicrous. Would every individual and business that operates a credit system need to be licensed as debt collectors? It is obvious that inadequate thought and planning have gone into the Bill as these are very serious flaws.

Arrangements on debt collection already exist. The recapitalisation programme announced earlier this year includes a new code of conduct for mortgage arrears which has already come into force. This new code ensures that financial lenders make every possible effort to facilitate those who fall into arrears with their mortgages. It is not in the best interest of any of the parties concerned to use a heavy-handed approach and this new code ensures this does not happen. The Minister, Deputy Dermot Ahern, has indicated to the House that he intends to table a Report Stage amendment to the Land and Conveyancing Law Reform Bill 2006 to ensure that all repossession or sale proceedings on housing loan mortgages be taken in the Circuit Court. This is to counteract a trend that has recently emerged whereby such proceedings are taken to the High Court, which causes undue financial and personal burden for those involved and encourages them to enter a defence.

My advice to those who find themselves in uncontrollable debt is to seek the help that exists. Businesses are finding it difficult to survive at this juncture and imposing legalities upon them regarding obtaining payment for goods and services is certainly not the solution. There are various options available to those who find themselves in a position of having to call in debt and there is help for those who find themselves in debt. The Bill proposes bureaucracy in what is an already difficult environment. It does not provide any solutions to the issue of debt collection.

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