Denis O'Donovan (Fianna Fail) | Oireachtas source

I support the Bill which has been introduced by my colleague, Senator Marc MacSharry, and compliment him for the work and effort he has put into it. It is a very difficult area and a serious problem. I was disappointed that the Minister dismissed out of hand the efforts of Senator MacSharry. The current legislation, irrespective of what category, is failing those people who are caught in the trap of receiving money from these moneylenders. Unfortunately, in a time of recession the loan sharks, the unlicensed moneylenders, come to the surface. They emerge like rats from a sewer in difficult times and are difficult to deal with. The people who are in dire straits and go to moneylenders probably have a poor record with banks, no account with credit unions, may have burned their bridge with the Society of St. Vincent de Paul and exhausted all opportunities and as a last resort are prepared to throw the last dice in an effort to get €100, €200 or €500 to survive. That is a most unfortunate situation.

I listened carefully to what the Minister had to say. He said there was sufficient law in this area and that this Bill would be duplication. If that is the case why is the scourge of moneylending raising its ugly head so frequently throughout Ireland at present? That is likely to continue while the recession continues. I would hate to see poor people who are borrowing money at exorbitant interest rates, sometimes 300% which is extraordinary, further crucified. One has to ask from where those who are providing the money are getting it. Is it money that has been laundered? Is it money derived from the sale of drugs or other illegal or illicit activities and, if so, the current laws are not adequate to turn the screws on them, because it is obviously continuing.

Like other speakers, I laud the great work done by our credit unions throughout the country, the Society of St. Vincent de Paul and so on who have done immense work. The moneylender is a bit like a drug addict, he needs a supply and has to survive. He will not go to the Garda and will not squeal on the supplier of drugs and is in a desperate situation for a fix. Those who are borrowing the money, sometimes to feed their children or keep the roof over their heads, will do anything in desperate situations to get a few bob and will be very slow to bite the hand that feeds them on that particular occasion. The modus operandi of some of the loan sharks is threats, intimidation and instilling fear into unfortunate victims. In many instances, having borrowed a relatively small amount of money at the start, the loan sharks are so astute that before one repays the last few bob one is encouraged into another roll-over scenario.

It is a desperate situation and one problem leads to another.

Moneylending is a serious issue and Senator MacSharry must be given great credit for highlighting the issue. At the height of the boom moneylending was a miniscule problem. The Irish and European wide recession has changed its status and moneylenders, who are primarily illegal, are coming out of the woodwork again. Moneylenders can see that people are in desperate situations and dangle a carrot in front of them, entice and trap people. The Senator's Bill has highlighted a real problem that is evident in our towns, cities and throughout the country. The law does not protect the victims of moneylending and that is why he has raised the issue.

I shall conclude by asking the Minister of State to convey a message to the Minister for Justice and Equality that moneylending is a serious ongoing problem that will not go away. The current legislation does not protect victims. That is the truth. We cannot sidestep this unsatisfactory and difficult issue. Senator MacSharry must be commended for bringing the matter to the attention of the House. I understand that the Minister does not wish to accept the Bill. If he does not accept the legislation then we will not see the end of the problem this year or next year and the citizens and country must face an ongoing, serious and unfortunate problem.