Aideen Hayden (Labour) | Oireachtas source

This is an issue on which I hold very strong views, as colleagues know, but it seems to me some Members are confused about what is set out in the Bill. The lines that are proposed to be deleted relate to the provision whereby a debtor may make a declaration in writing that he or she has co-operated. In other words, it is the person who owes money who determines, by way of declaration, whether or not he or she has co-operated. It is a judgment call on the part of the person who is seeking to use the insolvency process. I regard that as an improvement on the previous situation where it was the lending institution that determined whether somebody had co-operated with the process. While the amendment is very well meaning, it perhaps misses the nuances of the relevant provision.

There is an issue in insolvency legislation generally regarding the independence of the process. As I said to the Minister of State on Second Stage, there is scope for amendment in that regard. As a member of the Joint Committee on Finance, Public Expenditure and Reform, I have been at numerous hearings at which banks have been present, and we have heard from a number of them that they do not have an independent process to determine whether a debt is sustainable. We have all acted for people in mortgage arrears, but a number of the pillar banks have said they do not have a difficulty with an independent body to determine what is and is not sustainable. The issue of whether somebody has co-operated should be within the remit of the Financial Services Ombudsman. The legislation relating to the Financial Services Ombudsman is much too weak and this is an area we could very much do with looking at again. It should be a priority of Government to amend the legislation to include provisions relating to the independence of the process and the code of conduct on mortgage arrears. In the context of this particular amendment, however, I do not believe there is an issue with this section.