Dick Roche (Wicklow, Fianna Fail)

As and from 5 May, there are two prisoners, one male and one female, in Irish prisons for the non-repayment of debt. Senator While will be aware that a person committed to prison as a result of the non-payment of a civil debt is committed for failure, through wilful means or default or culpable neglect, to obey an order of the court. Before the court makes such an order, it would have to go through an extensive procedure involving an instalment order and finally a committal order.

This is a mechanism for enforcing the court's instalment order. The threat of imprisonment can be effective and many debts are paid off when the prospect of imprisonment looms. Persons committed to prison for non-payment of debts do not qualify for remission of sentence under the rules for the government of prisons.

It cannot be presumed that all persons failing to meet their debts do so because of poor financial circumstances. Imprisonment is only used in cases where the courts are satisfied a person has the ability to discharge a debt but has not done so. In many cases, when a person committed for failure to pay a debt or fine is faced with the reality of imprisonment, he or she makes the payment.

A number of issues have been raised in this context. One argument, for example, is that attachment orders might be used as an alternative to imprisonment. However, attachment orders do not always work. An attachment of earnings order has a role in the case of an offender who has a salary and who thinks that it would be cheaper to spend a few days in jail than to pay a civil debt. However, those circumstances do not exist in all cases.

Senator White is correct regarding the pressures of modern society and the extraordinary availability of consumer credit. Consumer credit is a fact of life in our society but, unfortunately, many in our communities experience the down side of over-extending their borrowing arrangements or get into difficulties because there has been a change in personal circumstances, such as illness. The Government has paid attention to dealing with these cases. The Money Advice and Budgeting Service, MABS, provides a crucial service for people who require help and advice in making their way out of serious debt. The Government has made significant financial resources available to the service in 2005 — the figure for this year is in excess of €13.6 million. The seriousness of the problem is highlighted by the fact that MABS sees more than 16,000 new clients annually and has more than 30,000 clients on an ongoing basis.

The approach adopted by MABS offers a better way of achieving a result acceptable to both creditor and debtor. However, while MABS gives practical finance and budgeting advice and practical assistance in helping to engage with creditors, it does not pay debts. It simply helps people through the process. District Court judges recognise the work of MABS and in some instances they recommend that people who are before the courts avail of the service. It is, however, often difficult to persuade persons in debt to engage in the process. Sadly, some people leave their debts until they reach the point, as happened in the two cases I mentioned earlier, where imprisonment looms. The willingness of a debtor to manage his or her case is crucial and seeking expert advice is the best way forward if there is to be a successful resolution to the problem of indebtedness.

The number of persons in custody at any time for non-payment of debt reflects the fact that imprisonment is a sanction of absolute last resort. As I mentioned earlier, there are only two prisoners serving sentences for failure to pay debts, which represents 0.5% of the prison population. The role of the Department of Justice, Equality and Law Reform is that of implementing the order of the court as custodian of the person concerned for the duration of his or her sentence — nothing more and nothing less. It does not have a role in operating a debt management service. However, the Government has given particular attention to this issue and the Minister for Social and Family Affairs, in particular, has had much to say on personal debt recently.

There are procedures in place for people who find themselves in difficulties and people would be well advised to use them. While as much assistance as possible is available through MABS and financial institutions, a small number of people in debt are often reluctant to engage in the process, despite their situation, and that must be recognised. However, the imprisonment option is one of in extremis and it follows a very lengthy process. People are given opportunities but sadly there are vulnerable people who fall through the cracks. Imprisonment is a punishment visited only at the end of a very lengthy process and is the final, rather than the first, solution.