Michael Healy-Rae (Kerry South, Independent)

I am sharing time with Deputies McConalogue and Ó Cuív. I thank Deputy Michael McGrath for and compliment him on bringing forward the Bill. I also thank his party for providing me with the opportunity to speak.

This legislation is very important for everyone in Ireland. The area relating to debt management and advice and household budgeting services is entirely unregulated at present and is giving rise to growing concerns. This sector has expanded greatly in recent years as personal debt levels have increased substantially. Many distressed borrowers signed up to seemingly attractive offerings of some providers in this area and subsequently found themselves in further financial trouble and in a less secure position.

It is stated in section 11 of the Bill: "It shall be an offence for a debt management advisor to receive from or hold on behalf of a consumer to whom it is providing debt management advice any monies other than monies paid by the consumer for the provision of debt management advice." If such a provision had been in place, the events to which Deputy Mathews referred and which occurred last year would never have taken place. On radio last summer, people recounted stories about what had happened to them and about how they had been so badly treated by those who were supposed to help them. That really highlighted the situation in which we find ourselves. In the intervening 12 months, the position has become much worse. Deputies, Senators, councillors and everyone else who is trying to help and advise members of the public experiencing difficulties at present is aware of the true extent of the hardships being experienced.

When it gets dark this evening, there are many houses throughout the country in which people will not be able to turn on their lights because they have no electricity. In others, home heating oil tanks are empty. These are the conditions in which people are living in the Ireland of 2012. This is why treating people who are in debt with respect is very important. I do not like tarring everyone with the same brush but I am very angry with some of those who advanced loans and massive mortgages to people and who encouraged them to accrue huge debts. Those to whom I refer are now not being helpful in the context of putting in place a proper framework to allow people to deal with their debts. Instead, they are harassing and haranguing people and that is why there is so much anger. Young couples who were previously doing their best, who each had jobs and who wanted to better themselves and their families were encouraged by the banks and everyone else to get on the train lest they be left behind. They did what they were advised to do and they have been left with massive debts which they are struggling to pay. As a result of this, they have been willing to turn to anyone whom they think would be in a position to help them. Unscrupulous individuals have taken advantage of them and tried to make money out of their misfortune. That is why the work done by Deputy Michael McGrath and several of his colleagues in drafting this Bill is so important. Solid regulation by the Central Bank is of vital importance. People have to be helped and encouraged to work their way out of debt and many will do so if they are given a chance. However, a one-shoe-fits-all solution is impossible to achieve as everyone's personal circumstances are completely different. Having been involved in many such cases, I have seen debt management advisers who are genuine and good at their job help people to get out of their debt problems. However, one has to be willing to do so. Those who gave the money in the first instance also have to be willing and flexible enough to ensure different programmes are put in place and proper advice is given.

There has been much talk about mortgage and personal debt. There is another category which was raised several months ago by the other Deputy McGrath.

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