Dermot Ahern (Louth, Fianna Fail)

As a general rule, to be eligible to use the small claims procedure, a consumer or business must have purchased goods or services from someone selling them in the course of business. Claims cannot be made to the Small Claims Court in respect of debts, personal injuries or breach of lease agreements. The small claims procedure has always been pro-consumer and was never intended to serve as a mechanism for the recovery of claims against consumers or outstanding rent or other charges from tenants. The small claims procedure excludes claims by landlords against tenants. Inclusion of claims for the recovery of unpaid service charges and sinking fund contributions could undermine the pro-consumer ethos of the small claims procedure which I am anxious to preserve.

The current monetary threshold applicable to the small claims procedure is €2,000. Providing for a higher threshold of €3,000 in respect of this type of claim would be at odds with the threshold applicable to claims generally under this procedure. The limit of €2,000 is also in line with the European small claims threshold, although from time to time we examine the possibility of raising the limit.

The Law Reform Commission report which gave rise to the amendment suggests the Small Claims Court deal with contract debts. Notwithstanding the report, the small claims procedure only deals with claims for goods or services purchased from someone selling them in the course of business. I am, therefore, loath to agree to an extension of the procedure, as to do so would result in further claims for the use of the court and the purpose for which the court was originally intended would become completely enveloped. I suggest to Senators that we proceed slowly on this matter. The appropriate court for determining claims of this nature is the District Court which is, by and large, relatively inexpensive.