Enda Kenny (Mayo, Fine Gael) | Oireachtas source

The repossession issue, I understand, is a Topical Issue later on.

The Government has already stated that it intends to bring forward a number of measures dealing with mortgage distress and repossession of houses in order to ensure that, where possible, borrowers retain their houses, whether that be through the mortgage-to-rent scheme being changed or whether there is an issue in respect of an independent assessment of structured propositions being put forward. That is separate from the question of bankruptcy being reduced from three years to one.

Deputy McGuinness will be aware that when the former Minister for Justice and Equality, Deputy Shatter, brought the Bill through the House to reduce it from 12 years to three, there was no great division on whether it should be three or one.

However, I would caution that Deputy Penrose's Bill was presented to the House and was not objected to, and I was in the House. The information available to me is that where bankruptcy applies, 70% of cases end up with repossessions of the house, which is not what the Government is about or what anyone wants to see.

In addition to that, I believe the Oireachtas committee should certainly look at this question. We should take into account all the small and medium-sized enterprises and the credit unions which are owed money. They would lose and the taxpayer would have to pay for all of that. It is not as simple as it seems to say that a reduction from three years to one year is a panacea for all these issues. The evidence is that in bankruptcies, repossessions occur in 70% of cases. How many people running small businesses in Kilkenny, Cork or Clare or how many credit unions throughout the country which are owed money would lose out completely if we had a system whereby a debtor could decide that he or she is getting out and declaring bankruptcy? Those people would lose out. It might be an issue for the committee to have some hearings on this and to get first-hand evidence of what might happen. I am sure people do not want to get into a situation where unintended consequences mean that more and more people could be caught by having this apply. I see certain people applying pressure now that this Bill be introduced automatically. A well-known and well-publicised case is currently being considered. I understand many millions are owed in that case. If bankruptcy applies, then clearly there are serious losses on that scale. It is not an answer to everyone's problem. Perhaps the Oireachtas committee could do a very useful exercise here in looking at those issues, for example, in respect of small and medium-sized enterprises, credit unions and smaller contractors which are owed money but which will not get it if there is a simplicity factor whereby a debtor can decide to become bankrupt and say "Tally-ho".

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