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

Amendments Nos. 27 to 38, inclusive, insert a new Part 7 into the Bill and are required to give effect to the transfer of the existing Office of the Official Assignee in bankruptcy to the Insolvency Service of Ireland. When we were dealing with the Personal Insolvency Bill I indicated that if it was not possible to address this issue in that Bill, we would deal with in the Courts Bill. Unfortunately, due to lack of time in regard to finalising the Personal Insolvency Bill last year, it was not possible to provide in that legislation for the transfer of the Office of the Official Assignee in bankruptcy to the Insolvency Service of Ireland as originally intended. I am anxious that this matter be dealt with as soon as possible to ensure the Insolvency Service of Ireland and the services of the Office of the Official Assignee in bankruptcy are aligned and provided for in the Personal Insolvency Act 2012. To facilitate this, I am proposing to provide for appropriate additions to that Act by way of amendments to this Bill. I should mention that I intend to move some further amendments on bankruptcy on Report Stage. These relate to some remaining issues concerning the transfer of staff of the Office of the Official Assignee in bankruptcy to the Insolvency Service of Ireland of Ireland as well as some technical amendments relating to bankruptcy.

Amendment No. 27 provides for the interpretation of the new Part 7. Amendment No. 28 provides for the amendment of section 3 of the Bankruptcy Act 1988 by the substitution of new definitions of bankruptcy inspector and Official Assignee, to take account of the changes proposed in this Bill. Amendment No. 29 provides for the amendment of section 60 of the Bankruptcy Act 1988 by its deletion and the substitution of a new section 60, by the insertion of three additional sections which provide for the transfer of the staff of the assignee's office, for the delegation of the function of the Official Assignee and for the appointment of deputy Official Assignee. Section 60 provides for the functions of the Official Assignee, defines the relationship between the Official Assignee and the insolvency service's director, particularly in relation to the exercise by the Official Assignee of adjudicative functions but more generally in relation to statutory functions underpinning the assignee's conduct of a bankruptcy case. Subsection (3) provides for the Official Assignee to be independent in the performance of his or her functions.

The new subsection 60A sets out the provisions concerning the transfer of the staff of the Office of the Official Assignee in bankruptcy from the Courts Service to the Insolvency Service of Ireland. It provides that the staff concerned shall be seconded from the Courts Service to the Insolvency Service of Ireland for a period of two years from the date of the commencement of this provision. On the expiry of the secondment period, each person seconded shall transfer definitively to the staff of the Insolvency Service of Ireland or exercise a right to return to a suitable vacancy in the Courts Service. The new subsection 60B provides for the delegation of the functions of the Official Assignee to other staff members of the Insolvency Service of Ireland. This is an important provision which is required to facilitate the management of cases by the Official Assignee in the future in response to the anticipated significant increase in the number of bankruptcies arising from the reduction in the bankruptcy period to three years. A delegation under the new section 60B will permit the person to whom the functions of the Official Assignee are delegated in respect of an individual bankruptcy arrangement case to handle the case from start to finish, including the execution of transfers of property. The provisions of this section will not affect the vesting of property in the Official Assignee. However, subsection (5) permits a person to whom the Official Assignee's functions are delegated to dispose of property that is vested in the Official Assignee under the Bankruptcy Act.

New subsection 60C provides for the appointment of a deputy to act for the Official Assignee in the event of a vacancy in the office or the temporary absence or incapacity of the Official Assignee. The subsection provides for the director of the Insolvency Service of Ireland to designate a Deputy Official Assignee who will act in place of the Official Assignee in his or her temporary absence or while the position of Official Assignee is vacant.

Amendment No. 30 provides for the amendment of section 63 of the Bankruptcy Act 1988 to replace the reference to "rules of court" in section 63 (b) with a reference to "regulations made by the Minister under this Act". Procedure relating to court applications in respect of bankruptcy and matters on which a court can give directions will continue to be regulated by rules of court. However, it is more appropriate, following the change of status of the Office of the Official Assignee in Bankruptcy from a court office to part of the Insolvency Service of Ireland, for other matters relating to the Official Assignee's functions to be regulated by the Bankruptcy Act and the Personal Insolvency Act and regulations made under those Acts instead of rules of court.

Amendment No. 31 provides for the amendment of section 69 of the Bankruptcy Act 1988 to include a regulation-making power to make provision for the manner in which the Official Assignee maintains accounts in bankruptcies and arrangements. This matter is currently provided for in Part 27 of Order 76 of the Rules of the Superior Courts. Amendment No.32 provides for the repeal of section 83 of the Bankruptcy Act 1988. The repeal arises as a consequence of the proposed amendment to section 17 of the Personal Insolvency Act 2012, which is proposed in amendment No. 36. Amendment No. 33 provides for the substitution of the existing section 84 of the Bankruptcy Act with new text, the purpose of which is to permit the unclaimed dividend account to be held in a bank other than the Central Bank and also to provide that the manner in which that account shall be kept shall be prescribed by regulations made by the Minister rather than by rules of court. The operation of the unclaimed dividend account maintained by the Official Assignee with the Central Bank under section 84 of the 1988 Act is currently governed by Part 28 of Order 76 of the Rules of the Superior Courts. Amendment No. 34 provides for the substitution of the existing section 144 of the Bankruptcy Act 1988 with new text, the purpose of which is to extend the section to cover regulations under sections 69 and 84 of the 1988 Act to make provision for the scope of such regulations. Amendments Nos. 35 to 38, inclusive, provide for the necessary amendment of the Personal Insolvency Act to take account of the extension of its remit, following the transfer of the Official Assignee's Office. Amendment No. 35 amends section 9(1) of the 2012 Act to provide that the principal functions of the Insolvency Service of Ireland shall include the administration of the functions of the Official Assignee. Amendment No. 36 amends section 17 of the Personal Insolvency Act 2012 to provide that the Insolvency Service of Ireland shall keep accounts relating to the functions of the Official Assignee under the Bankruptcy Act 1988.

The amendment of this section gives rise to the deletion of section 83 of the Bankruptcy Act 1988.

Amendment No. 37 proposes to amend section 20 of the Personal Insolvency Act 2012 to allow for the power for the insolvency services to charge fees in relation to bankruptcy administration by the Official Assignee, since it is proposed that the office of the assignee will cease to be a court office necessary to provide a new statutory basis for the charging of fees in relation to the functions of the official assignee.

Amendment 38 provides for amendments to other enactments that will be necessary as a consequence of the transfer of the Official Assignee to the insolvency service. Subsection (1) amends section 32(3) of the Solicitors (Amendment) Act 1960 and refers to fees payable in accordance with regulations under section 20 of the Personal Insolvency Act 2012. Subsection (2) amends the eighth Schedule to the Court (Supplemental Provisions) Act 1961 on the transfer of a business from the Office of the Official Assignee to the new insolvency service. It is appropriate that the office relinquish its status as an office attached to the High Court and that the relevant provisions of the Court (Supplementary Provisions) Act 1961 be amended to remove reference to the office of the official assignee. In addition, since the official assignee's office would no longer be an office of the High Court it would not be appropriate that the business transactable in it be prescribed by rules of court.

Subsection (3) provides for the amendment of the Schedule to the Dormant Account Acts 2001 as the accounts held by the official assignee are no longer to be under the control of the court. It is proposed to amend Part 2 of the Schedule to reflect the change in status of those accounts. Subsection (4) amends section 2(1) of the Personal Insolvency Act 2012 to include a definition of official assignee.