Deirdre Clune (Fine Gael)

I am pleased to have this opportunity to contribute to the debate on this Bill. I welcome the Minister to the House again. He has been here frequently and I am sure we will see much more of him judging by the legislative programme coming from the other House and from the Department

I will focus on a few measures in this Bill. Part 8 deals with amendment of the Family Law (Maintenance of Spouses and Children) Act. This legislation will now empower the District Court to regard as contempt of court the failure by a debtor to pay a maintenance order to comply with a maintenance agreement. I welcome this measure as it is long overdue. It was initiated in legislation in the previous Dáil as a result of a judgment in the McCann case, which the Minister mentioned in his contribution. What has tended to happen in many cases, as is happening in my area in Cork, is that spouses or partners to a maintenance agreement ignore it and they have been advised to do that in many cases. I have learned from speaking to court officers that a difficulty they now find is that many people ignore their commitments and obligations to pay maintenance because the threat of imprisonment has been removed. Implementation of this measure will go a long way towards improving conditions on the ground for those who are failing to get maintenance payments they are due. The consequences of that for them is that they then approach community welfare officers for financial support which those officers cannot give them because there is a maintenance order in place. Many of them are in a catch-22 situation. The measure introduced here will, I hope, alleviate that difficulty and change the position back to what it was pre-2009.

I will focus briefly on the proposal on bankruptcy. The Minister said this is an interim proposal and that he hopes to bring forward legislation on personal insolvency in the next nine months or so. In this context, the period of three years and five years has been mentioned. We welcome that there will be changes in the legislation on this area. I look forward to the introduction of a personal insolvency Bill. That is what people need. It will provide a method or process, other than bankruptcy, whereby an individual or business in financial difficulty can re-establish themselves. The proposed changes to bankruptcy law have been mooted for several years. The innovation task force and Forfás have recommended changes in our bankruptcy law if we are to encourage entrepreneurs which includes people who are willing to start up their own businesses. It is small and medium-sized enterprises that are currently experiencing difficulties. The examinership process is not open to them as it is too expensive and involves many visits to the High Court. What is needed is recognition that some businesses, although not all, can be saved and, in turn, jobs can be saved. We are speaking in a climate where there is not much sympathy for people who have been reckless, of which here are many examples to which we can point. However, there are also people who find themselves in a difficult financial position through no fault of their own because of the economic situation. Debtors have not been meeting their obligations and these people have not been paid and have consequently found themselves in financial difficulties.

The Minister is aware of the Law Reform Commission's report in this area. It recommended that a voluntary process be set up whereby individuals and small companies could go forward under the umbrella of an officer of the court. This would be a person who has expertise in financial matters and that they would have some security and protection for a while to discuss with debtors money owed and what can be paid. It is a means of providing breathing space for companies. It exists in Northern Ireland and in UK where it has been very successful.

We want to encourage entrepreneurs, people to start their own businesses and employers to take on additional employees. It will be an important part of the recovery of this economy. We need to create the climate where that can occur. As matters stand, our bankruptcy laws are a disincentive towards establishing businesses. That needs to change. They have been described as archaic and not fit for purpose. There is a list of complaints and a list of alternatives that can and should be implemented if we are to get this country moving again. I hope we will have sight of the personal insolvency Bill. The country is crying out for it. It is not about rewarding those who have been reckless but about supporting those who find themselves in a difficult financial position. There is almost a stigma attached to becoming bankrupt here. Bankruptcy carries a bad name, but in other countries, particularly in the US, if one's business fails, one can move on within a certain period. If one's business fails, one can move on within a certain period. It is almost recognised as a badge of honour. One learns from one's failures. One pays one's debts to society in whatever way one can, but at some point a line is drawn and one's energy, enthusiasm and commitment to creating jobs and developing opportunities for oneself and others are recognised and allowed to flourish. Perhaps on Committee Stage the Minister will tease out why the relevant period is five years rather than three. A change to the duration seems to be a common request from both sides of the House today. I welcome the Bill and look forward to the Minister's deliberations on Committee Stage.