Brian Hayes (Dublin South West, Fine Gael)

I congratulate, on behalf of the Government, Deputy Michael McGrath and his colleagues on this very positive Private Members' Bill that was introduced last night. I believe it has been accepted on a cross-party basis. The Deputy has made a habit of putting forward Bills that are being accepted by the Government and he is probably more prodigious in producing legislation than we are on this side currently, which is important. It is indicative of the Deputy's very positive approach, rather than the grandstanding seen in others.

By having this legislation before the House, pressure is being put on the Government to bring forward the necessary amendments to the legislation currently in the consultation process, the Central Bank (Supervision and Enforcement) Bill. The logical question to be asked by Deputy McGrath and his colleagues is where stand the amendments and when will we see and proceed with the legislation. My understanding is that the consultation process is due to be completed by the end of this month, and we will have to take account of that process before proceeding to the drafting of necessary amendments following the advice of the Attorney General. I also take the point made by Deputy Harris that there is a responsibility on us to ensure that the widest possible consultation occurs so people with a view can express it.

I will turn to some of the issues raised last night and this evening. During the debate, the Money Advice and Budgeting Service, MABS, was mentioned on a number of occasions. The Government is aware of the sterling work carried out by this national, confidential and free service. My colleague, the Minister for Social Protection, Deputy Joan Burton, has indicated she is fully satisfied that MABS has sufficient resources to assist and support its clients. I am informed, based on the latest information available, that at the end of February 2012, the average waiting time from first point of contact to first appointment with a money adviser in MABS was approximately three and a half weeks. It is important to note that during the waiting period clients are assessed and those in need of immediate assistance are given a priority appointment; others are provided with assisted self-help to ensure they have taken steps to assess their situation and, if appropriate, they are supported to take "holding action" with their creditors.

It was mentioned in the debate that there is no law with regard to debt management companies. However, I confirm again to the House that some debt management firms which process payments on behalf of clients are subject to regulation under the EU Payment Services Directive, which was transposed into Irish law. Under that directive, any firm which provides payment services, as defined by the legislation, requires authorisation to trade from the Central Bank.

Deputies on both sides referred to the appalling scenario facing so many of our people in mortgage debt, and I had the opportunity to address the Seanad yesterday on that issue. I assure the House of the firm resolve on the Government's part to take whatever action is required to deal with the issue and bring forward a suite of options for people in a distressed position. The House is aware that the Taoiseach recently formed a new Cabinet sub-committee to deal with the matter, which highlights the prioritisation afforded to the issue at the heart of the Government. The House is also aware of the Keane report recommendations, which the Government accepts, and I understand by the end of this month the various banks - in daily communication with the Department of Finance and the Central Bank - will bring their plans to fruition. It is anticipated that in the second half of this year, substantial new proposals from the banks will be put to the market that will provide options for people, particularly with regard to writing down or rescheduling debt and giving choice through the likes of negative equity or shared loans, for example.

The issue of advisers, dealt with in a recommendation of the Keane report, is being actively considered by the Government, and the Minister for Social Protection is working on a scheme that she will make announcements about very shortly. It will deal with how such advisers will be used. The key issue is that the banks have been recapitalised and there is frustration on both sides of the House because of the need for the banks to get on with the task of restructuring people's debts. We have seen some signs of positive action to date but it is not half enough in my view. We require an independent middle man or woman to examine the proposals from borrowers and lenders before coming to a considered, independent view on a sensible way forward. At the moment, borrowers have virtually no power. They can appeal to an appeals committee within the bank but that committee does not have the imprimatur of a State agency or adviser to come up with a fair and independent assessment as a third party. We must get to that point because this is an area of expertise that must be regulated in a way that will give confidence to everyone involved in it.

I am advised there is a provision in the Central Bank (Supervision and Enforcement) Act 2011 to make regulations about giving information regarding costs and associated charges relating to financial services. The consumer protection code, which was revised with effect from January, also has provisions relating to the disclosure of fees. On enactment of the proposed legislation, the Central Bank will have the power to make regulations, in consultation with the Minister for Finance, regarding the new provisions that relate to debt advice and debt management companies. This will include information regarding charges and other costs.

I sincerely congratulate Deputy Michael McGrath. His initiative will rightly put pressure on us to bring consultation on this matter to a conclusion and to produce the necessary amendments that will embrace all the objectives he has set out in this Bill. By having this Bill before the House, the onus has been placed on the Government to get on with drafting the amendments. The Government is sometimes frustrated in what it can achieve in the timeframe we all want, but the legislative initiative taken by Deputy McGrath has helped us to bring this matter to a conclusion and I congratulate him on that.

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