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

Before I deal with section 10, I understand that a Clerk's correction is required under Standing Order 136. On page 12, line nine of the Bill, paragraph (f) of section 10(6) as it stands contains an incorrect cross-reference to paragraph (c). It should, of course, be paragraph (d), so I would be grateful if this typographical error could be corrected by the Clerk.

Amendment No. 1 seeks the deletion of the existing subsection 10(3) and its substitution with new text which seeks to provide that the court shall be guided by the Insolvency Service of Ireland's reasonable living expenses guidelines when making an attachment of earnings order. I can understand the Senators' concerns around this issue. As I said on Second Stage, there is nothing to prevent the court from having regard to those guidelines if they so wish, but there is no need to make such a provision in the Bill. When I spoke on this matter on Second Stage, I said that I thought it was preferable to allow the court full discretion in assessing a debtor's capacity to repay a debt. Individual circumstances will vary from debtor to debtor, and the court should be allowed to make its own decision relating to these matters. While I understand the motivation of the Senators who have proposed this amendment, I think they may well find that the court has more latitude in determining living expenses - and may indeed be more generous to debtors - if it is not obliged to have regard to the Insolvency Service of Ireland's guidelines.

As I said during the Second stage debate, reasonable living expenses have a different context in respect of personal insolvency. This Bill deals with the debtor's capacity to pay money that he or she owes to a creditor. Its provisions ensure that the court has sufficient information available to it relating to the person's financial circumstances. The court is also obliged to take into account any representations the debtor may make in relation to his or her circumstances. It is important to remember that the courts already have a body of expertise relating to this matter and I believe that they will approach it in a sensible manner. In any event, there is nothing to prevent a court from having regard to the Insolvency Service of Ireland's guidelines if it so wishes. There is simply no need to make an explicit provision for this in the Bill.