Mick Wallace (Wexford, Independent)
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I move:

That leave be granted to introduce a Bill entitled an Act to amend the Statute of Limitations 1957 to bring the issue of Circuit Court and High Court Judgments into line with the most recent bankruptcy legislation, by reducing the lifetime of High Court and Circuit Court Judgments from 12 years to two years, and reduce the Statute of Limitations from six years to two years in instances where the collection and enforcement of civil debt by Banks and Vulture funds are concerned.

The law of limitations in Ireland is governed by the Statute of Limitations 1957, which sets out the statutory rules regarding the various time limits available to a person or body seeking to initiate a civil claim against another person. The 1957 statute defines seven categories of limitation periods. For example, the time limit for taking a personal injury claim is two years, whereas the time limit for taking a claim based on a contract debt, such as a debt owed to a financial institution, is six years. A subsequent judgment taken by such an institution can be extended to a further 12 years. This Bill seeks to amend two categories of limitation period within the Statute of Limitations legislation. Its aim is to reduce the current time limit from six years to two years in the case of a civil claim based on a contract debt such as a loan from a bank. The Bill also seeks to reduce the lifetime of High Court and Circuit Court judgments from 12 years to two, which would be in line with the most recent bankruptcy legislation. In fact, judgments currently run well in excess of the Statute of Limitations - by six years or so - and are, therefore, well out of line with the statute as it applies to contract debt. Strangely enough, the debts and judgments of a deceased person become barred under the statute after two years, which is the current objective of this amendment for both living people and corporates. It seems that under current legislation, living people must face a worse fate than death and are expected to continue to exist in limbo for six to 12 years.

The Bill we are introducing is based on the experiences our offices have had over the past six years in dealing with people throughout Ireland who are in debt or have a debt hanging over them. The legislation is also guided by a report produced by the Law Reform Commission in 2011, which recommended that the length of a civil claim based on a contract debt should be reduced from six years to two. The commission queried why certain civil claims, such as personal injury claims, have a two-year limit while the contract debt limit remains at six years. The current time limit of six years could be in breach of Article 6 of the European Convention on Human Rights, which is incorporated into Irish law under the European Convention on Human Rights Act 2003. Article 6 of the convention states, "everyone is entitled to a fair and public hearing within a reasonable time by an independent and impartial tribunal established by law". It seems to be a blatant breach of the Article 6 entitlement to a "hearing within a reasonable time" that it is possible for a civil claim to hang over someone for six years and then be initiated at the last minute. Our State-owned and partially State-owned banks are currently wielding the 12-year judgment axe over considerable numbers of customers who, for one reason or another, do not wish to go through the insolvency or bankruptcy route but who are making their best efforts to settle with those banks. The manner in which the last ounce of blood is being extracted from these people means they are suffering to a much greater extent. The existing outdated legislation is putting them at a disadvantage, to say the least.

The recent influx into Ireland of vulture funds such as Cerberus, which has bought a substantial amount of debt from our banks and from NAMA, is adding to this problem. To put it in perspective, Cerberus has bought €13.5 billion of par debt loans from NAMA over the past three years. It has bought well over €20 billion of such loans in total when its purchases from Ulster Bank are included. I reiterate that these vultures are wielding the 12-year judgment axe to frighten already distressed borrowers who have been sold out by the State in recent times. A large slice of Ireland has been sold to these vultures at a fraction of its real value. The Minister, Deputy Noonan, has said that the term "vulture fund" is "a compliment" because "vultures provide a very good service in the ecology through cleaning up dead animals that are littered across the landscape". It is not surprising that the Minister has become their cheerleader, particularly in view of the number of times he has had meetings with vulture funds. He would do well to remember that the dead animals the vultures are cleaning up are the Irish people, some of whom are well into their 70s and 80s. I am sure every Deputy will agree that we would not like to see our fellow countrymen treated in this way. Two of the purposes of this legislation are to discourage plaintiffs - those taking cases - from delaying the initiation of proceedings and to protect defendants from having the cloud of litigation hanging over their heads for six years, or up to 12 years in the case of judgments. More particularly, this Bill seeks to bring the timing of these outmoded statutes into line with recent bankruptcy and insolvency legislation, thereby providing a fair playing pitch for all.

Seán Ó Fearghaíl (Kildare South, Ceann Comhairle)
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Is the Bill being opposed?

Enda Kenny (Mayo, Fine Gael)
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No.

Seán Ó Fearghaíl (Kildare South, Ceann Comhairle)
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Since this is a Private Members' Bill, Second Stage must, under Standing Orders, be taken in Private Members' time.

Mick Wallace (Wexford, Independent)
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I move: "That the Bill be taken in Private Members' time".