Aideen Hayden (Labour) | Oireachtas source

This has been an issue of great concern in the voluntary sector. I compliment FLAC not just on the work it has done on this matter but also on its general contribution to this legislation. I also acknowledge the work of the Vincentian Partnership for Social Justice in defining what constitutes reasonable living expenses.

I accept Senator Bradford's point. Obviously there are complex rights involved, including the rights of the debtors and of the creditors. However, this aspect of the legislation will not just guide activities under this legislation but will be a wider guidance to the actions of the banks, in particular, in how they approach dealing with the type of settlements the Minister is hopeful they will offer to debtors, given that they will try to avoid having people going to the personal insolvency service. It is, therefore, of wider interest than simply in the context of this legislation.

I was very pleased to see the amendments put forward by the Government. As Senator Zappone said, it is necessary to facilitate the social inclusion of debtors and their active participation in economic activity in the State. In that context, there is a genuine fear among the wider group of organisations dealing with this matter that what will be adopted will be the lowest common denominator, in other words, the social welfare assistance rate. The clear message must be conveyed that this is not the case. I agree with Senator Zappone that when the Minister sets out the bodies that must be consulted it would be appropriate to include the wider voluntary and academic sectors and to consult other indices on minimum income standards and so forth. I would not favour it being debated that what constitutes reasonable is the social welfare assistance rate, which we all accept does not constitute a reasonable standard of living.