Michael Colreavy (Sligo-North Leitrim, Sinn Fein)

The economic crisis gripping this country has left many in difficult situations. Every one of us in this Chamber has heard the harrowing tales of those who simply do not have enough money to afford the bare necessities. It puts so many people in a difficult situation. What do they choose to spend their little amount of money on? Do they spend it on crippling mortgage payments? Do they spend it on food for their families? Do they spend it on school books and uniforms for their children? There are people willing to sacrifice heating their home just in order that they can afford essential medical services. These must be some of the most difficult questions that any household could face and it is our duty, our responsibility as elected representatives, to help alleviate their suffering in any way we can.

The purpose of this Bill is simple. It is, essentially, to place a cap on the interest rates that legal moneylenders can enforce on those who must borrow from them. The difficult questions people are forced to ask of themselves places many in that difficult situation where they have little choice but to seek money from the easiest, and often only, possible route. When one is not able to obtain a loan from a credit union or from a bank, one is forced to seek a loan from moneylenders. The current legislation means those who find themselves in difficult situations can suffer extortion from moneylenders and extremely high interest rates. This is immoral. Moneylenders are using the suffering of people to make a profit off them, which simply cannot be allowed to continue. A 40% interest rate cap is a necessary step to bring these moneylenders into line with reality. We cannot, as legislators, let them extort from the most vulnerable in this society.

We also need a wider debate on the role moneylenders play in our society. First, we must address why people are forced to seek loans from these outlets. It is not a healthy sign for our society that so many people are forced into a situation in which they must go to such lengths to cover essential items. Second, we need to have a discussion as to how we may find an alternative to the current system of moneylenders. There must be an easier and better way for people in difficulty to attain small, short-term loans.

We also need to take cognisance of the recent report by Social Justice Ireland showing the alarming and growing imbalance between the poor and the wealthy in this country. We must re-examine the level of disposable income required to maintain an individual or a family with some dignity, we must put protections in place to support those whose income drops through no fault of their own, we must eliminate the inexcusable delays in deciding on applications or on appeals for social welfare and we must make the supplementary welfare scheme fit for purpose.

Moneylenders, licensed or unlicensed, are an indictment of the State and its failure to protect our people. This Sinn Féin Bill merely seeks to put a cap of 40% on licensed moneylenders' interest. If the Government Deputies oppose this Bill, it will certainly appear to us and, more importantly, it will be obvious to the public that the Government is opposing a very modest but real attempt to make life better for at least 100,000 of our citizens.

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