James Browne (Wexford, Fianna Fail) | Oireachtas source

This is a very important Bill. I acknowledge the Minister, Deputy McEntee, who introduced the Bill. I thank Deputies for their contributions and engagement. I welcome their comments and will consider carefully the various important points that have been raised.

Families and individuals do not enter into insolvency lightly. It is a very difficult situation and a difficult and challenging decision for anyone to take. When people enter into that process, we have to ensure they do not face undue hardship. We should allow as much compassion as possible in those circumstances. There is no shame in anybody entering into an insolvency. It can happen to anybody and it is usually beyond people's responsibility or control. Insolvency is certainly not an easy way out. It provides a pathway in order that people can get back to solvency and re-engage with society. In that respect, it is an extremely important mechanism. I thank MABS, the Free Legal Advice Centres, and other organisations and individuals who reach out and help people when they find themselves in these very challenging circumstances.

The original Bill was hugely important when it was introduced, and I acknowledge the role of the former Deputy, Willie Penrose, in that respect. At the time, brakes were placed on the legislation, which was radical for Ireland. Property rights are protected within our Constitution. There were some concerns that if the Bill went a little too far, it could be challenged in the courts. As I said, some brakes were put on the Bill at the time, understandably so. The legislation has proved to be extremely robust and the courts have interpreted it in a very fair manner. What we are attempting to do today is amend that legislation to take off the brakes to some extent and allow it to be even more compassionate for people in particular circumstances. A larger, more comprehensive Bill will be brought forward later. A review is being carried out and is expected to be completed at the end of the second quarter, with a scheme prepared at the end of this year to address some of the concerns Deputies have raised in this debate. That will be an important review.

I will now address some of the specific concerns and issues Deputies raised. Deputy Martin Kenny raised the issue of the sustainability of Abhaile. I assure the Deputy that funding to Abhaile has been extended until at least the end of 2022 and there is a further commitment to resource the service within the programme for Government. A comprehensive review of Abhaile's operation is being carried out but the Government is fully supportive of the service.

Deputy Catherine Murphy asked why confirmation of truth should be introduced when a declaration of truth was introduced in the Civil Law and Criminal Law (Miscellaneous Provisions) Act 2020. She pondered whether there may be some issue with the 2020 provision. I assure the Deputy there is no issue with the provision within the 2020 Act. The miscellaneous provisions Act of 2020 was about declarations of truth within the courts system. Here, however, we have a quasi-judicial situation. To ensure there is no difficulty or challenge around that, we have decided to include the declaration of truth in this legislation in respect of the Insolvency Service of Ireland where a declaration of truth is being used. This belt-and-braces approach will ensure there can be no challenge in that regard.

Deputy O'Reilly asked about SME debt. The Tánaiste and Minister for Enterprise, Trade and Employment, Deputy Varadkar, is preparing a Bill to introduce a lighter, cheaper and quicker form of examinership to help SMEs restructure and recover their debts. That will be a very important part of the overall work the Government is doing to address insolvency for companies and businesses.

Deputy Fitzpatrick referred to his Committee Stage amendment. I will deal with amendments when they arise on Committee Stage.

Again, I thank all the Deputies who have contributed to the Bill to date. There are important amendments in the Bill. That is why they had to be brought forward before the more comprehensive reforming Bill, which will be introduced later to help people who find themselves, unfortunately, and through no fault of their own, in very serious financial circumstances as a result of the pandemic. While the Government has introduced substantial supports for individuals and businesses, inevitably and unfortunately, some will not make it through financially to the other side of the pandemic. That is why these amendments are so important and urgent. As I said, the Bill responds to real needs across the economy and society and forms part of a suite of amendments, supports and programmes brought in by the Government. With the co-operation of all sides of the House, I expect and hope it will have a swift passage through the House and be enacted as quickly as possible.

See this speech in context