Alan Shatter (Dublin South, Fine Gael)

I wish to clarify that the proposal of a personal insolvency arrangement in respect of a principal private residence is not limited to financial institutions. It could concern housing provided by local authorities, for example, in the context of shared ownership schemes.

The proposed regulation of personal insolvency practitioners was raised by a number of Members. I indicated in my opening contribution that further provisions would be necessary for these individuals. Personal insolvency practitioners will be central to the negotiation of debt settlement and personal insolvency arrangements. Part 5 of the Bill includes an enabling provision relating to these practitioners. As stated, I will be bringing forward more detailed proposals in respect of them on Committee Stage. These proposals will deal with the type of persons who will qualify for regulation - whether by designated professional bodies or otherwise - as personal insolvency practitioners. It is clear that a broad probity test and proper indemnity will be required. However, I would be wary of seeking to, as some Deputies suggested, bar people based solely on their former roles in different financial sectors. While I understand the sentiments expressed, such a course of action would likely give rise to a judicial review and consequent difficulties in implementing the legislation.

The issue of the payment of personal insolvency practitioners also - properly - arose during the debate. Such practitioners are normally paid from the product of the insolvency process. Their fees will be subject to negotiation by the creditors and have to be set out in a transparent manner for all concerned. I would be opposed to fees being charged as a percentage of an outstanding debt. I do not believe that would be tolerated by either debtors or creditors.

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