Dominic Hannigan (Meath East, Labour)

I thank other Deputies for sharing time with me and for providing me with an opportunity to speak on this legislation. Since the publication of the Keane report last week the Government has consistently said it is open to all ideas and comments from people to try to resolve the country's mortgage arrears problem. It is our role as legislators to provide solutions for the problems facing many of our constituents. Our debates on the Keane report and on this legislation show that we are doing just that - we are showing the people that we need to tackle this problem in a serious and considered way. While the focus of this debate has been on mortgage arrears, that is not the only debt problem we are facing, as Deputy Dowds said earlier. We also need to look at the overall issue of personal debt. As this Bill indicates, overall personal debt is a mounting problem for which we need to find a solution. There are many possible solutions to the debt problem.

Earlier today, I listened to the presentations made to the Committee on Finance, Public Expenditure and Reform from organisations such as FLAC, Threshold, New Beginning and others. They had many interesting ideas to share. In the coming months, we will meet with many other groups who have their own proposals on dealing with personal debt problems. I look forward to talking to these groups and listening to their ideas. It is important that we should hear as many proposals as possible so the Government can make an informed and coherent decision on the measures that need to be introduced.

I thank Fianna Fáil Deputies for proposing this Bill, which is their submission on how to deal with these issues. I support the principle of the Bill, that we must give people a structure to resolve their debts. We must focus our support on those who cannot pay their debts, due to unemployment, negative equity or substantially reduced household earnings. It is in the interests of future economic growth, and in the public interest, that people should not be saddled with debts they simply cannot repay. Creditors must also know that the money they are owed will come back to them either in part or in full. We must examine both sides of the issue so we can provide a solution that will be of benefit both to consumers and businesses. We should not forget the important role local businesses play in towns and villages across the country. Many such businesses are currently struggling, so personal debt resolution along with other measures such as the partial credit guarantee scheme will be of great help to them.

There are issues that the Bill does not address and they will have to be taken into account at some stage. For instance, there are no costings for the proposed debt resolution orders or mortgage arrears. When it comes to debt resolution orders, the Bill does not indicate who will pay for the unsettled debt after the 12-month period. Will the State pay these debts? Who will pay for the write-offs? This has not been accounted for. The Bill does not set out how the debt settlement and mortgage resolution office will work, how many staff will be required or how it will be funded. These issues need to be fleshed out in time. We need to be clear and careful in our calculations so we can show the public exactly what we propose to do. We are no longer in a position where we can overshoot budget targets and expect somebody to pick up the tab. People need to know that we are working on the best solutions for their problems in as cost efficient a manner as possible.

People worried about their debts will be somewhat comforted by new rules announced by the Central Bank a few days ago concerning the number of times they can be contacted in any one month by a financial institution. That is just one small step but it is in the right direction. The Minister's commitment to publish the personal insolvency Bill by March 2012 is another positive step. I urge the Minister to prioritise this legislation so we can get an overall solution to the issue of household debt as soon as possible.

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