John Deasy (Waterford, Fine Gael)
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Question 470: To ask the Minister for Social and Family Affairs the discussions he has had with the Department for Finance regarding the continued operation of illegal moneylenders here; his views on whether the introduction of MABS has had an impact on these activities; and if he will make a statement on the matter. [35360/06]

John Deasy (Waterford, Fine Gael)
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Question 471: To ask the Minister for Social and Family Affairs the amount of funding allocated to MABS in each year since its inception. [35361/06]

Séamus Brennan (Dublin South, Fianna Fail)
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I propose to take Questions Nos. 470 and 471 together.

Moneylending is regulated under the Consumer Credit Act 1995. The licensing of moneylenders is a matter for the Irish Financial Services Regulatory Authority. I am concerned about the cost and availability of credit for people on low incomes. In June 2005, I met the Financial Regulator to discuss this issue. As a result, the Financial Regulator initiated research with the Combat Poverty Agency to find out more about the nature and extent of financial exclusion. The report will be available to the Financial Regulator shortly. Officials of my Department will meet him to discuss the policy implications of the findings. MABS was established to build new and more comprehensive approaches to combating the problems of moneylending. My Department, in consultation with the MABS service providers, keeps the role of MABS under review to ensure it continues to strengthen its role in supporting people on low incomes to manage their finances. MABS received funding of €16.4 million from my Department in 2006 to provide a free, confidential and independent service through a network of over 50 offices and 230 staff for people in debt or in danger of sliding into debt. In 2005, almost 27,000 people used the service and so far this year 10,000 new clients have approached it. The growth in demand can be attributed to the increase in the availability of credit and the quality of the service provided by MABS staff. MABS is highly regarded and successful in meeting its clients' needs. I propose to put MABS on a statutory basis to build on the best features of the MABS model of service to the public and thus ensure a modern and streamlined structure geared to meet the rapidly changing face of debt problems. I intend to bring proposals before the Government in the near future.

The following table, which details the amount of funding allocated to MABS in each year since its inception, shows that funding increased by 69% between 2002 and 2006.