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

We are taking the amendments together. On the exempt motor vehicle, I believe a vehicle with a value of £1,000 is exempt under a similar debt mechanism in Northern Ireland. The relevant legislation was enacted in Northern Ireland in 2011 and Sinn Féin was part of the legislative process. We originally proposed a figure of €1,200 but I undertook to give consideration to Deputies' comments on the issue, including with regard to the safety of vehicles and a range of other matters. Having given the matter consideration, we have increased the value to €2,000. This refers to an exempt motor vehicle that is not included as part of a debtor's assets. It must be recalled that the debtor may keep the vehicle while having €20,000 of debt wiped out. There are some creditors who will regard it as entirely unreasonable that someone should retain a motor vehicle valued at €2,000 in circumstances where they will not be paid anything in the event that the debtor owes them €2,000. There has to be balance in this matter. The exemption is subject to the application not seeking to settle the purchase cost of the item as a qualifying debt. In other words, if I have a vehicle valued at €2,000 and I owe €1,800 on the vehicle, the vehicle cannot be made exempt from the debt process in circumstances where the person who sold the vehicle or funded its acquisition is left to hang and is not being paid. That is the exception and again the Minister may, by regulation, review the amount.

I do not propose to accept Deputy Mac Lochlainn's amendment, which proposes a value of €3,000. One could conclude that we are in some kind of bidding war on this issue. Deputies should remember that for every exemption, one is dealing with creditors who may be owed small but important sums of money. Where one is dealing with reasonable living expenses, a person who cannot have a vehicle cannot drive. The reason other jurisdictions do not provide for this type of exemption is that they take the view that a car is luxury if a person owes others money. It is a luxury not only in the context of retaining the car but also given all of the expenses that have to be incurred to keep it on the road, including petrol, car insurance and tax and maintenance costs. We are doing something here that many other jurisdictions do not do. In the circumstances, the Deputy's amendment proposing to increase the value of the car cannot be accepted.

Amendment No. 39 proposes to set out more clearly the information the debtor is required to provide to the approved intermediary in support-----

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