Pearse Doherty (Donegal South West, Sinn Fein) | Oireachtas source

I thank the Minister for giving that information. It is probably an understatement to say the personal insolvency system is clearly not functioning as it was intended to do. Representatives of the Insolvency Service of Ireland are travelling around the State to inform people and try to raise awareness, which is to be welcomed. I am aware that the Personal Insolvency Act 2012 is to be revised soon. I have not seen any indication from the Government that the major flaw in the system which was identified by Sinn Féin and those who work at the coalface with people who are struggling to pay their mortgages when the personal insolvency legislation was debated here will be addressed. I refer to the section of the 2012 Act which allows a bank that is a major creditor to veto any proposal made by a personal insolvency practitioner. The problem is that the Minister can bring the banks to water, but he cannot make them drink it. It is clear that Bank of Ireland, in particular, has set its face against the spirit of the legislation. The Minister who owns 15% of Bank of Ireland has confirmed in his reply that it is the policy of the bank to veto personal insolvency arrangements proposed by personal insolvency practitioners "where secured debt is to be written down." As a 15% shareholder in Bank of Ireland, can he say this policy is simply not acceptable and should be reconsidered by the bank? Will he emphasise that the personal insolvency system is intended to deal with both secured and unsecured debt? Will he make it clear that Bank of Ireland should co-operate fully with it?

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