Feargal Quinn (Independent)

I listened carefully to the Minister's logical contribution on Second Stage when he proposed to reduce the term before an application for discharge from bankruptcy may be made from 12 to five years, having first proposed reducing it to six years. This is a significant advance. I gather the 1998 Act was almost ten years out of date when introduced having been based on a report published in 1978. I am pleased, therefore, that the law is being changed in this respect. Like Senator Mooney, I look forward to hearing the Minister's reflections on the strong case in favour of the amendment made by Senators O'Donovan and Walsh.

Unemployment is a scandal. It is also scandalous, however, that people are declared bankrupt for 12 years. It is equally scandalous when people are seen to be living a life of luxury within a short period of being declared bankrupt. Let us ensure we strike the correct balance. A strong case has been made for reducing the bankruptcy period to between three and five years. I am impressed by the position adopted in the United States where bankruptcy is accepted. As I noted on another occasion, F. W. Woolworth was made bankrupt three times before he succeeded. On the other hand, I am also aware of people who got away with not paying their debts. They were not made bankrupt and those to whom they owed money had to put up with watching their behaviour. For this reason, we must strike a balance.

On listening to the Minister's contribution on Second Stage, I considered the proposal to introduce a bankruptcy period of five years acceptable. I would not be surprised, however, if he has been influenced by Senator O'Donovan and will consider reducing the period even further.