Aodhán Ó Ríordáin (Dublin North Central, Labour) | Oireachtas source

Nuair a bhí mé ag éisteacht leis an Seanadóir Ó Clochartaigh, rith an seanfhocal a bhíodh ann tráth dá raibh, "céard a dhéanfadh mac an chait ach luch a mharú" liom - what would the son of the cat do only kill a mouse. When one is dealing with an amoral system, regulations will always be catching up in relation to such amorality.

On behalf of the Minister, I thank the Members of the House for the useful exchange of views. It is good to hear that there is a recognition on both sides of the House of the necessity for this legislation and that it will improve matters, although I appreciate that some Members are of the opinion that it does not go far enough. The Minister looks forward to further discussing the Bill's various provisions with the Senators over the coming period. It is an important piece of legislation and one which is urgently needed.

The change to eligibility limits for a debt relief notice will bring immediate help to persons with very limited income who are not property owners and who are weighed down by debts and have no prospect of being able to pay. The new provision for a court review will help, in particular, the substantial number of persons who want to pay their mortgage and remain in their homes but who, in reality, are insolvent and are struggling to pay their debts. It offers a new guarantee that a reasonable personal insolvency proposal put forward by such a borrower under the Personal Insolvency Act 2012 will be fairly considered and provides for a refusal by creditors to be reviewed, where appropriate, by the court which will have power to impose the proposal if it finds it is fair and sustainable. The court will decide accordingly to carefully balance the criteria which ensures appropriate protection for the borrower and for the public interest while taking full account of the rights of all parties concerned.

Senator Ó Domhnaill asked why there were so few cases and inadequate responses. The review addresses precisely the two main reasons for the low number of cases which have been identified. First, borrowers do not bring cases because they believe banks have a veto. The new court review addresses that point. Second, those in serious debt do not know where to turn and new independent advice and consistent measures currently being put in place address that difficulty.

In terms of why borrowers are not coming forward, there has been extensive consultation with stakeholders, in particular, organisations assisting those in serious debt, as to the reasons borrowers are not coming forward to take forward the options available. The new framework to assist those in mortgage arrears is designed specifically to respond to the reasons identified in these consultations. I would say that the lack of confidence in the ISI was not cited as a difficulty by those concerned.

I was asked why the Bill makes such a limited range of changes and why not simplify the rules for obtaining a protective certificate. The Bill makes a number of urgent priority changes, in particular, the introduction of the court reviews so that these can be put in place by September. It does not mean that other changes arising from the ongoing review of the legislation will not be made as the question of streamlining procedures for a protective certificate is under consideration in that context which involves complex drafting changes, which cannot be made quickly and, unfortunately, is a continuing process.

In terms of resources for accessing the court review procedure, the Minister is aware of the importance of this question and it is being considered within the ongoing cross-departmental work on a framework for advice and assistance.

Senator Hayden made a number of points in terms of bankruptcy reform. The Minister for Justice and Equality sent a request on 26 May last to the Joint Oireachtas Committee on Justice, Defence and Equality asking that it might consider the substantial issues under public debate regarding bankruptcy policy, including the role of bankruptcy in resolving indebtedness and the possibility of further reducing the bankruptcy period which is currently three years to one year with the hope the committee might be able to revert with its views before the summer recess. The committee sent its report to the Minister last week and she is currently considering its recommendations carefully. However, this is not a question which can feasibly be included in this Bill if the review and assistance measures are to be in place by September.

Senator Hayden made a comment on the conduct of lenders. The Senator may wish to note that the conduct of the lender is expressly included in the new provision on court review in section 21 as a factor which the court can take into account in its review.

A number of the points were well made during the course of the debate. As some Members said, we are taken with the pressures that are placed on families and individuals and the stresses and strains that occupy their minds when this issue comes to their door. Collectively, we are conscious of that and are working hard to alleviate that pressure.

This is a major and important reform. The Minister has indicated it will be accompanied in September by a suite of measures, some of which are being piloted, to ensure that independent advice and support is easily accessible to the distressed borrowers in arrears on home mortgages and to help them engage as early as possible and find the best solutions so that repossession of the borrower's home remains, as always, a last resort.