Seanad debates

Monday, 3 July 2006

Photo of Brian HayesBrian Hayes (Fine Gael)

I wish to raise a serious issue that needs to be debated and regulated in proper measure. It relates to the role of the retail banking sector in adding to the general level of indebtedness in the economy. In the 12 months to May, there was a 17% increase in the level of credit card indebtedness. This means that approximately €2.4 billion is owed. Clearly, there is a responsibility on borrowers but there is a particular responsibility on lenders to ensure their policies are ethical.

There is considerable evidence that many banks and credit card companies are pushing credit cards in front of people on modest incomes and that credit card limits are being raised in the absence of any request to do so from card holders. This is a serious issue.

There is evidence in the UK that many people are acquiring new credit cards to pay off debts on old credit cards. Unfortunately, there is also evidence that credit card indebtedness in the UK has led to suicide and personal difficulties for those who are indebted. Both the Financial Regulator and the Irish banking sector have a particular responsibility to get their act together on this issue and ensure that lending practices are fair and that money and credit cards are not thrown at people who will then, understandably, become indebted.

As the Leader is aware, we have received a report from the Judicial Appointments Advisory Board. The Seanad has a particular role to play in examining some of the report's recommendations. Every year between 2002 and 2006, the board recommended to the Government that before it appointed new members of the Judiciary, it should ensure that such prospective members underwent a full and rigorous medical examination to ensure they met a particular standard. I am raising this issue again because there is very little point in a statutory body like the board continuously referring to the need for such a provision if nobody in the Houses takes heed of it. At some point in the future, possibly the autumn, the Government should decide whether or not to act on the board's recommendation that it ensure that new members of the Bench undergo a full medical examination before they are appointed to these very important positions.

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