Niamh Smyth (Cavan-Monaghan, Fianna Fail) | Oireachtas source

Fianna Fáil supports the Bill and its primary purpose, that is, to provide that any person or firm carrying on a business of providing credit, hire purchase or consumer hire agreements to consumers and other relevant persons will fall within the authorisation and regulatory remit of the Central Bank of Ireland. This will give the Central Bank the necessary legislative basis to apply its consumer protection code, or any other relevant code, to such firms. The Bill facilitates the implementation of key recommendations of the Tutty report on the operation of the PCP market, which stated that the Central Bank should apply relevant provisions of its consumer protection code, particularly the obligations on financial service providers under the code to assess the financial capacity of the consumer and the suitability of the product for the consumer prior to entering into a credit agreement, to all providers of hire purchase or PCP agreements and to consumers. All providers of PCP and similar agreements to consumers will now have to be authorised by the Central Bank, which will be able to apply its consumer protection code and other consumer protection powers to such firms. This will improve the level of protection available to the consumers of such agreements.

As part of the review of the regulation of personal contract plans, PCP, commissioned in 2018, Mr. Michael Tutty considered the contents and recommendations of an earlier Competition and Consumer Protection Commission study on personal contract plans, the Irish market, and separate Central Bank studies on the overview of the Irish PCP market. Following his considerations of the market and other considerations, the Tutty report recommended that further consumer protections in relation to PCP agreements be introduced. In particular, it recommended that the provision of the Central Bank consumer protection code, which requires lenders to assess the suitability of the product for the consumer and the availability and ability of the borrower to repay the debt over the duration of the credit agreement, should be extended to hire purchase and PCP agreements.

The implementation of that particular recommendation to all the providers of hire purchase and PCP agreements requires the legislation that is being brought forward now. It gives me the opportunity to state that it is a most welcome move by Government. In the past, we have seen people entering into PCP agreements, particularly with car companies when purchasing cars or vehicles, and not being so aware of the balloon payments due at the end of the contract. Often, it came as a nasty shock to consumers when that time came.

l have listened to some of the debate today. It is most disingenuous of Members of the Opposition to stand up in the House as though they are the only people that have come from the SME sector. There are many Members within Government and all three parties within Government who come from the SME sector and family-run businesses and who have the understanding. The Opposition Members do not have a monopoly in that. A very disingenuous account was given by the Opposition earlier.

Finally, I wish to state that I agree with the sentiment that our credit unions have been hugely important in providing personal contact with people in their local communities and financial support when others may not have been so willing to help people. Today's announcement and this legislation on consumer protection will ensure that people are protected and that they are granted loans that they have the capacity to repay. I thank the Minister for all of his work on the Bill.

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