James Browne (Wexford, Fianna Fail) | Oireachtas source

I will try to address a number of the points and we will have a greater opportunity on Committee Stage to get into more detail.

Senator Ward raised a number of points. There were extensive consultations both with the Department of Finance and with the Central Bank and at no stage was any objection raised but I hear the Senator’s concerns on whether there could be an unintended consequence or negative effect on young people being able to avail of a mortgage. The scheme of the Personal Insolvency (Amendment) (No. 2) Bill will be published at the end of this year but before that, in the second quarter of the year, a full and extensive review will be undertaken of all of the different provisions within the insolvency regime. I certainly hope and expect that the point made by the Senator of a potential negative consequence will be considered within that review. Our only real reason for bringing forward these particular provisions is because of the pandemic and its potential impact, which is why we are moving quickly on this, together with the continued economic uncertainty.

Senator Gallagher raised the issue around secured debt on farmland. The Minister, Deputy McEntee, and I had a meeting with the IFA earlier this week and this very issue was discussed and considered. There are two challenges here. There are very real concerns for the farming community, especially as some vulture funds are now taking on secured debt from other financial institutions. One of the challenges concerns the Constitution which, of course, is very important, and the issue of property rights, where people have secured the debt of businesses with financial institutions and they have property rights. We have to be very careful not to risk the entire regime.

The second issue is around secured debt. If one has property as a member of the farming community, it is very important to be able to use that property to leverage funds as needed. If lending institutions were of the view that they may not be able to get repayment on that debt by way of their security this may make it more difficult again - in a somewhat similar way to the concerns raised by Senator Ward - to secure lending in the first place. This is something the Minister, Deputy McEntee, and I have discussed with the IFA and we have undertaken to give further consideration to those issues and will do so over the coming months.

Senator Martin also raised a number of important issues, one of which was why the asset limit was increased to €1,500. There are, of course, a number of other assets that are also taken into consideration such as household goods, a motor car and a piece of personal jewellery, which one may also add up together. MABS was consulted on this and was satisfied with this particular figure. However, with the broader of review that is happening in the summer, this issue will again be taken into consideration. This review will not involve just past legislation but will consider this Bill also.Again, the €3 million cap on secure debt is also part of the broader consideration in the review. All those broader issues will be taken into consideration.

A number of other matters were raised. Senator Seery Kearney referred to the specific figures. I will raise that with the Insolvency Service of Ireland and seek an explanation on how it all ties up. Personal insolvency is a very complex process. It was made to be that way initially because of fears of constitutional challenges but that has made it very difficult due to the set of procedures and the legalese relating to it. There will be an attempt with the second Bill to streamline it and make the procedures more straightforward and easier to attain because it is a very complex situation. I understand the reasons it was made so complex but it is much more settled now and we can have more confidence that we are making necessary changes, without the risk of the process being found to be unconstitutional because of the property rights issue.

We can consider anything I have not touched on in detail on Committee Stage. On my behalf and on that of the Minister, who sends her apologies for not being able to be here, I thank the Senators for their contributions and clear support for the intent behind the Bill. It is a positive and important amendment that will give relief to people who are in a very difficult situation, often through no fault of their own. The Bill responds to needs across our economy and society and forms part of the Government's commitment to introduce necessary reforms to the personal insolvency legislation. It will ensure that sufficient supports are in place for those in serious financial difficulties, including mortgage holders with repayment difficulties. With the co-operation of those on all sides of the House, we believe we can get this amending legislation through the Houses as quickly as possible and help give relief to people who are in very difficult situations.