Tom Fleming (Kerry South, Independent)

I welcome the Bill and compliment Deputy Michael McGrath and his colleagues on their excellent recommendations. I am sure the Government will agree with the main thrust of what is being presented. According to up-to-date figures, approximately 71,000 mortgage accounts are over 90 days in arrears, while a further 36,000 are the subject of repayment schedules with the banks. These statistics are increasing steadily by the week. In the Bill we need to ensure we have a robust system overseen by the Central Bank and that people can repay debt in a meaningful, representative and humane way.

One report published more than 12 months ago by the European Union and the Council of Europe concluded that a high level of consumer credit was not necessarily an indication of debt problems. The same report attributed the problem of indebtedness to unforeseen events such as unemployment, illness and changes in family circumstances. The problem of repayment capacity is likely to deteriorate for some time as spiralling costs take their toll, including increases in mortgage repayments, fuel costs, child care and utility bills. For example, I have been informed by some constituents who are customers of Electric Ireland that when they were 15 days in arrears, the company hired a UK debt collection company to contact them. This is an extreme action. We urgently need regulation and legislation to protect consumers from actions such as these taken by this company which is pursuing its customers in an aggressive manner. If an instant response is not forthcoming, customers are threatened with disconnection. This is a harsh action, particularly in wintry conditions, when people are left high and dry without a service to their households.

The MABS is the best model for a debt advisory service. It provides assistance which is free, confidential, independent and non-judgmental, and acts in a prompt and efficient manner. It works with its clients by supporting them, drawing up realistic budgets and maximising their incomes. I urge the Government to consider locating additional MABS offices countrywide to the 60 currently operating. In County Kerry there is only one such office which is based in Tralee. Its staff are under pressure, weighed down by continuous demands on its scarce resources. There is an immediate need for at least one more office in the country. I suggest this could be strategically located in Killarney to cater for the southern and eastern parts of the county. I commend the MABS for the fact that there are four offices located in County Donegal, as well as four in Cork city and county. This ensures the public in these expansive counties have good access to services. As County Kerry is of similar size and has similar terrain, I ask the Government to address this deficiency as a matter of urgency.

I welcome the inclusion of the Law Reform Commission's proposals in the Bill. In the debate on residential mortgage debt in this Chamber on 4 May 2011, I advocated that legislation be enacted to adopt some of the excellent recommendations in the commission's report to reform our debt laws radically. Twelve months later, nothing has been done. The most relevant recommendations in the commission's report, which are included in this Bill, are paramount if there is to be a radical overhaul of existing insolvency law, which is better suited to Elizabethan times. There are some excellent recommendations and I hope they will be adopted. I hope the Bill will be passed.

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