Róisín Shortall (Dublin North West, Labour)
Link to this: Individually | In context

Question 80: To ask the Minister for Social and Family Affairs the support he has given to the Money Advice and Budgeting Service in view of the concerns expressed by the organisation that they are being swamped with requests for advice; his views on the increasing levels of personal debt among families here; his further views on whether the structures and organisation of MABS require reform to cope with these new circumstances; and if he will make a statement on the matter. [22993/06]

Séamus Brennan (Dublin South, Fianna Fail)
Link to this: Individually | In context

The Money Advice and Budgeting Service (MABS) provides assistance to people who are over indebted and need intensive help and advice in coping with debt problems. There are 52 independent companies nation-wide operating the service and support is provided by MABS National Development Limited, a support company for the service. MABS was established on a pilot basis in 1992 and it has now grown to a countrywide service with a budget of EUR 16.41 million.

The programme provides money advice to individuals and families who have problems with debt and who are on low income or in receipt of social welfare payments. It places an emphasis on practical budget-based measures that help people to move permanently from dependence on moneylenders and to access alternative sources of low cost credit, particularly in their local credit union. Many voluntary and statutory bodies such as the Society of St. Vincent de Paul, the Community Welfare Service, credit unions, Citizens' Information Centres, Centres for the Unemployed, the clergy, Garda, and local authorities work closely with the programme.

The Government is keen to get more quality information on the nature and trends of the debt encountered as well as the categories of people using the MABS so as to better inform policy around over-indebtedness and also allow the MABS to be even more responsive to its clients' needs. In this respect I am pleased with the introduction of a new software application which has been developed for the specific use of the Money Advice and Budgeting Service — MABSIS (Money Advice and Budgeting Service Integrated System). That computer system was delivered on time and within budget.

It is a most important facility and, as well as easing the administrative burden on staff, it will provide very useful data around indebtedness which will in turn inform development of policy around money advice and budgeting. Last year alone almost 27,000 people used the service as compared with almost 18,000 some 4 years earlier. The demand on the service can be attributed to the increase in the availability of credit and to the quality of the service provided by the MABS staff. This year I have increased the allocation from my Department to the MABS Service by in excess of twenty percent to assist the MABS in dealing with this increased workload.

In November 2005 I informed the MABS National Advisory Committee that I intended to review the MABS Bill 2002 and invited each of the stakeholders to make submissions to me with a view to producing a more effective structure. I have received a number of submissions which I am now considering in order to provide a suitable framework to ensure that the service remains responsive in the coming years.

I believe the support structure put in place in recent years has been invaluable for management and staff and has been very effective in the areas of Community Education, Social Policy and Communications. I also believe that a national system with delivery at the local level is the direction for the future. The Service at present is highly regarded and respected and it is important that this continues to be the case.

It is my intention to have legislation enacted as early as possible in order to put the service on a sounder footing to continue its extremely important role in assisting people deal with indebtedness.