Joe Behan (Wicklow, Independent)

At the outset, I thank the Ceann Comhairle for allowing me the opportunity to raise on the Adjournment the important matter of personal indebtedness and its consequences for our country. I was prompted to raise this issue of personal indebtedness and its consequences following many heart-wrenching representations from my constituents on the matter and I congratulate the Oireachtas Library and Research Service for its excellent publication on the subject.

This publication made for startling reading. The figures for Ireland's personal indebtedness are staggering. The debt to disposable income ratio of our citizens rose by 270% over the period between 1995 and 2008. This is the largest increase in a group consisting of Ireland, the United Kingdom, France, Spain and Canada and provides at least one international benchmark with which to compare Ireland's indebtedness with that of other countries with a similar standard of living.

The practice of reckless lending by Ireland's financial institutions was not only focused on property developers. Those who traditionally would have found it difficult to access mainstream credit in the past were advanced easy credit without regard to their long-term financial prospects or their understanding of responsible borrowing and the impact of external factors on the ability to repay personal debt. The Minister for Finance and the Government must deal with the consequences of this personal indebtedness for those affected. There are countless families and individuals throughout the country who now suffer from severe levels of stress and anxiety because of their inability to meet their financial obligations. The research shows that not only are there health effects for the individuals concerned but another consequence of a lack of disposable income is that health concerns are not dealt with adequately because the individuals cannot afford to seek the necessary treatment. There is clear evidence supporting the link between indebtedness and health problems and growing evidence of the direct and indirect costs associated with these problems on the public purse in respect of hospitalisation, treatment, loss of production and rehabilitation.

Another aspect of the report which must be dealt with concerns the problem that many of those who have fallen into debt have done so because they do not have adequate financial capability to manage their finances. This matter must be addressed in schools as part of the curriculum. Students should be prepared to deal with practical matters such as money management, disposable income, cost of credit and the implication of interest rates in order that they will not find themselves with this problem in the future. This Spotlight edition from the Oireachtas Library and Research Service notes the startling point that the National Adult Literacy Agency believes people may find it easier to understand moneylenders' repayment schedules than those of financial institutions.

I commend the excellent work being done by the Money Advice and Budgeting Service, MABS, and ask the Government to continue to support and promote this agency and its work. Following the collapse of the housing market and the current economic situation, people in our society have fallen into personal indebtedness for the first time in their lives. They may not all be aware of the support that MABS can offer and I believe Members must support and promote this vital service continually as it definitely can make a difference to those struggling under the burden of debt.

In my constituency, I have seen a large increase in the numbers of people seeking support. There is much anecdotal evidence about the rise in moneylending throughout the country and all Members are familiar with the scourge of moneylending in marginalised communities. Moneylenders prey on the vulnerable and must not be allowed to get a further foothold in disadvantaged communities.

In this regard I commend the excellent work being done throughout the country by the dedicated volunteers of the St. Vincent de Paul Society in combating the scourge of moneylending and more generally in dealing with the plight of personal poverty and indebtedness suffered by many people in disadvantaged communities. Furthermore, I wish to put on the record at this time my personal sadness at the death at the age of 91 years of Mr. Jim Pyne, a life-long member of the St.Vincent de Paul Society in Bray, County Wicklow. This was a man who railed consistently against moneylending and moneylenders and who served the people of his community with energy, dedication and selfless generosity.

I call on the Government to promote innovative ways to deal with the issue of personal insolvency. In other jurisdictions there are a number of schemes individuals can access such as individual voluntary arrangements and debt relief orders. We need urgent reform of our personal bankruptcy and insolvency laws which reflect the modern dimensions of these matters.

The Government needs to show the people of Ireland that it understands that factors outside their personal control have greatly impacted on people's personal indebtedness. It would be a fitting response to the current economic crisis if the Government initiated some person-centred schemes to help the families and individuals around the country who find themselves in financial crisis brought on by negative equity, reckless lending and unemployment. This would demonstrate that the Government cares about the plain people of Ireland and their financial difficulties just as much as they care and provide for the needs of the rich and powerful.

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