Alan Shatter (Dublin South, Fine Gael) | Oireachtas source

I was about to respond to comments on the amendment when the debate adjourned. If the Senators bear with me, I wish to ensure I refer to the correct amendment. My recollection is that we dealt with most of the issues. Senator Daly raised an issue related to consultations with banks and there was some sort of strange and odd implication that the banks were prescribing this legislation. Let me be absolutely clear about this; this is legislation to deal with the entire area of insolvency in a manner that extends to individuals who are in major trouble the possibility of avoiding bankruptcy. It provides the possibility of a non-judicial settlement in the context of debt settlement and personal insolvency arrangements.

This will facilitate arrangements being entered into with creditors that may result in some levels of debt forgiveness or debt forbearance and that will allow people within a prescribed period of years to work their way out of the financial difficulties in which they find themselves. Personal insolvency arrangements, which would apply to secured debt as well as unsecured debt, are relevant to individuals who have borrowed money on foot of security on property, in particular residential and commercial property. Debt settlement arrangements would apply to unsecured debt, which may be debt owing to banks.

Those Senators who followed the debate on this Bill as it went through the Lower House and headed into this House might notice that the Irish Banking Federation, IBF, is extremely unenthusiastic about some of the mechanisms contained in this particular measure.