Fidelma Healy Eames (Fine Gael) | Oireachtas source

Absolutely. The Senator did say that it was not a perfect life, nor can it be a perfect Bill. Between now and next week when the Bill returns to the House, however, there is one group I would like the Minister to think about. They are a unique group of mortgage holders who are not being taken into account by anybody. They are people who are making their repayments but it is costing them a large amount of their net income. They are paying more than 35% of net income on their mortgages, while struggling to meet overall commitments. They should not be overlooked.

In the course of campaigning for the children's referendum, I met three families that are paying up to 70% of their net income on household mortgages. When electricity, food and school bills are added in, how long more can they sustain that? I want to emphasise that these people are paying their mortgages. In page 4 of his speech, the Minister said that some debt forgiveness should be examined. I believe that some debt forgiveness should be considered for these people. They are paying their mortgages and if they were freed up a little bit it would be good for the domestic economy.

In America, legislation has been passed so that only up to 37% of a person's net income can be spent on a mortgage. I contacted the Central Bank about this.

It has no figures since 2007, which is incredible, regarding what proportion of people's income goes on paying off their mortgage. How can it plan for the problem we face at present and how can it advise us? What does the Minister believe is available for these people? They are not really interested in a split mortgage or in giving back some equity in their house. These are people who are prioritising the home.

Overall, I welcome the Bill as it is critical that we respond to personal indebtedness. However, I wish to examine some of its elements. Who will pay the personal insolvency person? Will it be the debtor and how much are they likely to cost? With regard to the range of judicial and non-judicial solutions in the Bill, I understood that the debt relief notice and the debt settlement arrangement mechanisms were to be non-judicial arrangements. If that is the case, why is it necessary to go to the Circuit Court to apply for that? Will the Circuit Court be a public setting? If so, will that not make it even more difficult for people to apply? It is bad enough to have these levels of debt, although some of them could be quite small, but will it be a public forum that can be reported on in the media?

I also have concerns about there being no right of appeal. With regard to the debt settlement arrangement and the personal insolvency arrangement, is there a right of appeal for debtors if the creditors veto the proposal put forward by the personal insolvency professional? The application and negotiation could be a long and expensive process which could be shut down by a rejection at the end. What recourse, therefore, is there for the debtor if this happens? Most people will not have more than one creditor for any single debt. Will each debt be considered separately or, for the purposes of the voting mechanism, are all debts of a single debtor considered together? If there are three creditors and two vote "Yes" and one votes "No", is the third creditor forced to go into the deal?

With the Bill providing for a basic discharge period of three years, while it is just 12 months in Northern Ireland and Britain, what incentive is there for people to declare bankruptcy here rather than move their residency to the North? I know of people living in Galway who have done this. How will we manage that?

I beg the Chair's indulgence, but this is an important Bill. With regard to the split mortgages, I understand there is a disagreement between Bank of Ireland and AIB on whether the mortgage holder should pay some interest on the warehoused portion. My proposal is that it should be, at worst, a nominal amount of, perhaps, 0.25% of simple interest on the warehoused portion so it does not become a bad debt on the bank's books.

I look forward to the Minister's answers to my questions.