Caoimhghín Ó Caoláin (Cavan-Monaghan, Sinn Fein)

Molaim an Teachta Dála, Pearse Doherty, as ucht an Bille seo a chur ós comhair na Dála. Is ceist fíor-thábhachtach agus is cinnte go bhfuil gá le h-athrú sa reachtaíocht atá ann faoi láthair. Tá daoine faoi bhrú uafásach, go h-áirithe daoine bochta, iad siúd is mó atá thíos leis an ngearchéim eacnamaíochta.

This is a progressive Bill designed to provide relief to the growing numbers of citizens who are becoming dependent on moneylenders. Why is such dependence increasing? The reason is that as a result of the policies of this Government and its predecessor, levels of poverty and inequality have increased and we have mass unemployment and social and economic exclusion of whole communities. The testimony of those working in the community shows that people are being increasingly denied access to credit in banks, if they ever had any credit in the first instance, and are exhausting their credit with credit unions. As a last resort, many more people are turning to moneylenders, both licensed and unlicensed. The State is failing in its duty to protect such people. The licensed moneylending sector is poorly regulated, the regulatory regime, such as it is, is much too complex, the rates of interest charged are exorbitant and the profit-making is excessive to the point of gross exploitation.

In a briefing on the Bill in this House yesterday, a representative of FLAC, the Free Legal Aid Centres, pointed out that when the organisation highlighted regulatory deficiencies in the moneylending sector to the Department of Finance, it was told the market will look after consumers. This is the type of thinking that led to the banking collapse. The Central Bank has admitted to FLAC that the regulatory regime for moneylending needs reform, but such reform is not its priority. Once again, it is the most marginalised who lose out as a result of this type of neglect. It is the woman who takes out a loan on the doorstep to make a Christmas for her children, the single mother who borrows to fund a first communion or the struggling parents who succumb to the moneylender to ensure their children can attend school with some dignity and have some chance of receiving a basic education.

There is a myth that licensed moneylending in this country is mostly carried out by small local operators. The reality is that the market is dominated by one highly profitable, British-based corporation, Provident, which is quoted on the London Stock Exchange. Provident is largely owned by financial services companies because its activities complement the policy pursued by the banks of seeking to exclude, in as far as possible, small and perhaps relatively unprofitable customers. It is estimated that the company has 100,000 debtors in this State but we do not know the size of its loan book, the full extent of its activities or the profits it sources here because European Union regulations treat Britain and Ireland as one region. As a result, figures for this State can be buried in the overall so-called regional account.

It is long past time for stricter regulation of the moneylending sector, greater transparency and some measure of relief for borrowers. Sinn Féin calls for a cap to be imposed on the interest rates applied to loans from licensed moneylenders. This measure is essential, especially as no cap is in place, presumably on the basis of the Department's spurious view that the market will look after consumers. The Minister may as well say the wolves will look after the sheep. As legislators, we must step in to protect members of the public. If it is the case that the Government will decline to support the Bill, I appeal to the Minister to indicate the steps he proposes to take to address this pressing issue and the timeframe within which he intends to do so.

The Irish League of Credit Unions estimates that 10% of people are turning to moneylenders to pay household bills. This is a significant proportion of the population and there is more than ample evidence in all our constituencies to indicate the numbers are growing. The Government must not sit on its hands any longer.

Sinn Féin is conscious of the need to avoid setting the APR rate too low as this could result in circumstances where licensed moneylenders leave the market to illegal operators which are worse again. Citizens need protection from illegal moneylenders. It beggars belief that there has not been a single prosecution for illegal moneylending in the past seven years, despite ample evidence of this activity taking place. I urge the Minister to recognise the seriousness of the position for many of our citizens by allowing the Bill to pass Second Stage. The Minister may then deal with it to his satisfaction on subsequent Stages.

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