Catherine Murphy (Kildare North, Independent)

The only people who would seek funds from the lending institutions in question would be those without or who cannot afford bank accounts. For the majority of those in such a position, it is not a choice but a matter of economic circumstances as bank accounts cost money. These are the target group for sub-prime lenders. They are also the most vulnerable in our society and are the ones who most need protection. However, last night, the Minister of State told us that putting a generous cap on the interest charged by these institutions would close down the industry and lead to an increase in illegal moneylending. There seems to be such certainty about this, so much so the Minister's speech could have been written by the likes of Provident.

According to Bloomberg, Provident is expected to have revenues of $1.1 billion in 2013 and it aims to be the main provider of credit of €65 billion to 10 million people in the United Kingdom and Ireland. Provident describes itself as a non-standard provider of home-delivered credit for unsecured consumers. It sounds great but it really is just door-to-door lending and collection.

All the Government's concerns seem to be towards the industry. Industry used to have a more benign meaning – the dictionary definition was of a manufacture or a trade – but this credit area is a trade in human misery, particularly when one considers rates as high as 187% charged on loans. This is in a Republic which is supposed to be government by the people for the people. For whom though? It is ridiculous no cap can be applied to the interest charged. This Bill seeks to do that which is important as there is little point in sending people to agencies such as the Money Advice and Budgeting Service, MABS, if we do not deal with the cause of debt problems through such moneylending. There is a precedent in this respect as credit unions have a cap on the interest they can charge.

It is obvious there is an increase in personal debt levels which will result in more people being pushed towards this sector. More will need protection from these lenders. Why has this matter been a low priority for the Central Bank? Why has it been a low priority for the European Union which regulates pretty much everything else? Why is it such a low priority for the Government when clearly more people will require the protection provided for by this Bill?

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