Jim Daly (Cork South West, Fine Gael)

Cuirim fáilte roimh deis labhairt ar an ábhar tábhachtach seo. Tá sé an-tábhachtach go ndéanfaimid ár ndícheall gach uile rud a dhéanamh do na daoine i gceist. I welcome very much the opportunity to contribute on this important debate. A very sensible and practical approach has been taken by Deputy Michael McGrath in proposing this Bill. This is usual for the Deputy and I commend him on it. It is fair to say all sides of the House are in agreement on this issue. I am pleased consumers' interests are at the core of the Bill.

As a Member of Parliament in a country with the highest ratio of indebtedness among all the countries in the OECD, I believe it is timely we deal with the massive issue of personal debt. Was it Rahm Emanuel who said one should never waste a good crisis? The debt management companies have reacted to our unfortunate circumstances and they have grown in strength. Unfortunately, their trade has multiplied in recent years. It is all the more important, therefore, that strict and durable regulation be introduced in this area.

The consumers we are seeking to protect in this Bill are the most vulnerable citizens. Those who are forced to go to debt management agencies are at a very low ebb, are very vulnerable and can become victims very easily. These consumers are primarily people who are already failing to manage their own financial portfolios. They go to someone they can trust for professional advice to help them to budget to ensure they always have sufficient funding to pay everyday bills, such as utility bills and mortgage repayments.

Last year, a number of cases arose when organisations such as Home Payments Limited went bust. The small amounts of money people had given in trust to such private firms were effectively stolen from them. Firms that went bust had not got the funds to pay the utility bills on behalf of their customers, thus leaving them with the double whammy of debt. They were really let down by this sector of professional businesses and also by the legislation in place that allowed these types of businesses to go insolvent at an enormous financial costs to their customers.

As Deputy McGrath will be aware, I welcome the fact the Minister has published, for consultation, the heads of legislation to deal with the regulation of debt management. The associated material was published on the Department's website on 24 April this year. It indicates the willingness of the Government to deal with this issue and affords an opportunity to strengthen the existing legislation, which is insufficient.

I wholeheartedly welcome regulation by the Central Bank of this sector of business. It is vital that consumers' interests in cases such as these be regarded as paramount at all times. I would like to see in place a system, such as a bond system akin to that of insurance companies, that would operate at all times within limits, and with adequate protections and funding to cover the costs of unforeseen or negative circumstances that could arise in regard to private firms offering the kinds of services in question to customers.

It is wrong that people who in good faith give their money, sometimes all or most of it, to debt management services in the belief the latter will pay their bills when they should be paid find out not only that their bills are not paid but also that the money they are giving, which can be between €500 and €700 per month, will never be seen again. It ought to be the case that if a firm managing people's money ends up insolvent and must be liquidated, there is an adequate bond or insurance cover in place to protect the consumer at all times. It is vital the consumer be protected. This Bill will largely address that, as will the proposals the Minister has brought to the Government for the regulation of the firms in question. These were published for consultation in April on the Department's website.

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