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

The amendment relates to the review process. It would reduce the period of commencement of a review of the operation of a personal insolvency arrangement under the legislation from five years to one. I have examined the issue of the length and scope of the review period and had hoped to be in a position to address it today. However, I intend to introduce an amendment on Report Stage to apply a reduced review period of three years to all of the new insolvency processes under the Bill. I do not think it would be practical or appropriate to review it after just one year of operation. In the light of my intention to reduce the review period to three years, I ask the Senator to consider withdrawing the amendment, as this issue is not of huge importance. It is of assistance to provide that there be a review. It is practical to conduct such a review after seeing how things have been working for three years. In real terms, the personal insolvency practitioner will always be there in the background. If the circumstances of a debtor change, he or she will be able to contact the personal insolvency practitioner. In effect, any arrangement put in place can be reviewed at any time, including after a change of circumstances. That review can result in another meeting of creditors, if necessary. If a personal insolvency arrangement has been entered into by a person who is in employment but he or she is made redundant after two years through no fault of his or her own, it will clearly have an impact on his or her capacity to make payments under an arrangement. This would result in the personal insolvency practitioner being invoked back into the process and some engagement with creditors. It is a good idea that there be a formal review. In effect, it is likely in practical terms that arrangements will be made for a continuous review or engagement if circumstances change or unexpected difficulties arise.