Frances Fitzgerald (Dublin Mid West, Fine Gael) | Oireachtas source

The Deputy spoke about personal contract plans. I have noted, as he said, that the issue has been raised in other countries. I have heard the debate in the United Kingdom about them. There is quite a lot of concern that people may be taking on unmanageable debt. I appreciate the Deputy raising the point which has not received very much coverage in this country, but it is one to which the public needs to be alerted and of which it needs to have a greater awareness. There is also a need for awareness of the matter at Government level. We are talking about a financial product. Like all financial products, we must ensure people are properly informed and are not taking on unsustainable debt. PCPs can be very good because they make new cars affordable and many are happy to enter into such arrangements. However, if they are too easily available or people are not aware of the consequences and cannot afford to repay their loans, as has been found in other countries, they can lead to people taking on unsustainable debt. It is essentially the responsibility of the Financial Regulator who oversees such products. If there are issues arising or it is found that the products offered in this country are not reaching the appropriate criteria and standards, it is up to the Financial Regulator to take further action. I will raise the matter with the Minister for Finance and ask him to revert directly to the Deputy because it is a very real issue which, as I said, has created considerable concerns in the United Kingdom and elsewhere.

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