Tom Hayes (Tipperary South, Fine Gael)

I welcome the opportunity to speak on this Private Members' Bill. The Bill seeks to create a new regime for the regulation of debt management, including debt payments. It is a sensible Bill on which I compliment the proposers because it deals with an issue that affects a huge number of people. Being in debt troubles families and creates a great deal of pressure. The use of Private Members' time to introduce this legislation is worthwhile and is something from which we should learn. Both the Opposition and the Government should be commended for doing something so simple.

In early August last year we saw the collapse of Home Payments Ltd. That company helped households to budget and spread out their payments over two different companies. The National Consumer Agency estimated that thousands of people were affected after their household budgeting service ceased to trade. The biggest fear expressed by consumers at the time of the company's collapse was that they would be hit twice by losing their money while still owing their banks and utility providers directly.

What was evident once the company ceased trading was that there was no protection or regulatory framework in place to protect those vulnerable customers who had made the decision to pay into that company weekly or monthly and for it to handle their household bills. Those people were trying their best to meet their debts, as all people do. Along with the Minister of State, Deputy Perry, I support the objectives of the Private Members' Bill which are to provide for effective regulation of this sector and protect its vulnerable customers.

Everybody in this House is aware of the huge number of people who are in financial difficulties. I support the efforts of the Minister, Deputy Noonan, on that issue. He has already brought proposals to Government for regulation of such firms. At the end of April the Minister for Finance issued a consultation document on the proposed Committee Stage amendments to the Central Bank (Supervision and Enforcement) Bill 2011. I understand it is the intention of the Minister, on the conclusion of that consultation stage, to bring forward legislation to regulate those firms. I see no reason the Minister will not ensure the objectives of this Bill are taken into account at this stage.

The Government is already facing up to this problem and has already in place proposals to regulate debt management. I hope the Government will be sensible and listen to the proposals from all sides of the House on this Bill.

It is already proposed to amend the Central Bank Act 1997 to provide for a regulatory regime for the services of debt management and bill payment firms that currently fall outside the existing regulatory framework. That will be done by incorporating a new category of regulated business. I welcome that, as I am sure will the Opposition, as it will ensure budgetary and debt management firms will be subject to the powers to which other institutions are subject in other legislation such as fitness, probity and administrative sanctions and powers by the Central Bank in the various items of legislation.

In these difficult economic times it must be acknowledged that people might be availing of the services provided by these companies now and in the future. It is important to ensure, therefore, that a robust and consumer driven regulatory regime is put in place to protect consumers and that we do not have a repeat of what happened to the customers of Home Payments Ltd.

MABS has provided a huge number of services in the past but in recent years the pressure on the staff in MABS has been enormous. Most public representatives have dealt with MABS. Its staff give a very fine service but it, in turn, must have the support of proper regulation. People can be good at managing their household and rearing their children but some people need help and advice on handling their finances.

When the Minister is considering the regulation I ask him to ensure it contains a section on handling banks. On several occasions I have seen at first hand people who were under huge financial pressure going to financial institutions for help. When people are in a weak position they need that support, and some of that should be built into the regulation to ensure that when they put in an effort they are offered a cut in interest or whatever. That would make it easier for people. If people are given some sort of a break when times are difficult and they are under pressure they can deal with their family finances.

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