Alan Shatter (Dublin South, Fine Gael) | Oireachtas source

Perhaps I should come in at this point. These amendments relate to the issue of reasonable living expenses. Amendment No 23 empowers the insolvency service to draw up guidelines in respect of a reasonable standard of living and reasonable living expenses for debtors. These guidelines are referenced in sections 24, 60(4), 95(4) and section 85D, as inserted by section 146 of the Bill, of the Bankruptcy Act 1988 and will be required for the information of all concerned in the new debt resolution processes.

The new section 23 sets out the principles and policies which will set the parameters for the guidelines on living expenses. The insolvency service will be required to consult the Minister, the Minister for Finance, the Minister for Social Protection and such other persons or bodies as the insolvency service considers appropriate or as the Minister may direct. Subsection (3) sets out the matters to which the insolvency service is required to have regard in the course of drawing up guidelines. These include poverty indicators as set out in Government publications on poverty and social inclusion, statistical information collated by the Central Statistics Office on household income and expenditure, and the consumer price index. The insolvency service may also consider other appropriate sources of information such as academic studies. A broad range of matters are required to be taken into consideration with regard to differences in the size and composition of households and the differing needs of persons, having regard to matters such as their age, health and whether they have a physical, sensory, mental health or intellectual disability. The insolvency service will be required to issue guidelines on reasonable expenses at intervals of no longer than one year. The insolvency service will work closely with the money advice and budgeting service, MABS, and other organisations with expertise and interest in seeking to devise broad, realistic and workable guidelines.

I ask Members to note a slight typographical correction to amendment No. 23, which is that the reference to "Insolvency Services" in subsection (3)(d) should read "Insolvency Service". I presume there is no difficulty in so amending it.

As for Deputy Mac Lochlainn's proposed amendments, the new section 23 was amended on Report Stage in the Seanad to take account of suggestions from Senators that the insolvency service also should have regard to other information or research sources such as academic studies when compiling the guidelines on reasonable standards of living and reasonable living expenses for debtors. I was happy to take on board this suggestion and have reflected this in the provisions of subsection (3)(d). However, it would not be appropriate to refer in primary legislation to an individual study or publication and therefore I do not propose to accept the Deputies proposed amendment to subsection (3)(a).

In respect of the proposed amendment to subsection (3)(e), I am satisfied that the existing provisions of the new section 23 are sufficiently broad to allow for differences in geographical location to be taken into account in the preparation of the guidelines where necessary - this was a provision that was introduced during the debate in the Seanad - and to the extent it is possible to so do. I should mention that each of the three new debt resolution processes provided for in the Bill requires the specific circumstances of the debtor to be taken into account and geographic location will of course be one such factor to be considered.

Amendment No. 30 refines the provisions of section 24(5) to better set out how "net disposable income" is to be calculated in the context of an application for a debt relief notice. Amendments Nos. 34 and 37 propose to amend section 24(7) and 24(14) to include a specific reference to the guidelines in regard to reasonable living expenses, which are to be issued under the new section 23. Amendment No. 77 proposes to replace section 60(4) with new text that takes into account of the new provisions provided in section 23 in regard to reasonable living expenses in respect of the debt settlement arrangement process. Amendment No. 129 proposes a corresponding amendment to section 95, which applies to personal insolvency arrangements. I think that addresses all of the various amendments, including those tabled by Deputy Mac Lochlainn, that fall under this particular group.

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