Dan Boyle (Cork South Central, Green Party)
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Question 94: To ask the Minister for Social and Family Affairs if legislation is not imminent in relation to the Money Advice and Budgeting Service; the immediate measures he will put in place that would allow the service to operate more effectively. [37659/06]

Tommy Broughan (Dublin North East, Labour)
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Question 121: To ask the Minister for Social and Family Affairs if he will make a statement on the recently published MABS statistics regarding borrowing by low income families; and if he will make a statement on the matter. [37588/06]

Richard Bruton (Dublin North Central, Fine Gael)
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Question 123: To ask the Minister for Social and Family Affairs his views on extending the remit of the Money Advice and Budgeting Service to include the operation of a special savings scheme for low income households; and if he will make a statement on the matter. [37622/06]

Breeda Moynihan-Cronin (Kerry South, Labour)
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Question 157: To ask the Minister for Social and Family Affairs the latest support he has given to the Money Advice and Budgeting Service in view of the concerns expressed by the organisation that it is being swamped with requests for advice; his views on the increasing levels of personal debt among Irish families; his further views on whether the structures and organisation of MABS requires reform to cope with these new circumstances; and if he will make a statement on the matter. [37603/06]

Eamon Gilmore (Dún Laoghaire, Labour)
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Question 164: To ask the Minister for Social and Family Affairs when the promised new legislation to place the Money Advice and Budgeting Service on a statutory basis will be published; the principal areas in which it will differ from the Bill published in 2002; and if he will make a statement on the matter. [37593/06]

Tommy Broughan (Dublin North East, Labour)
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Question 171: To ask the Minister for Social and Family Affairs if he has had discussions or plans to have discussions with representatives of the credit union movement with a possible view to providing additional credit options for low income families; and if he will make a statement on the matter. [37587/06]

Séamus Brennan (Dublin South, Fianna Fail)
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I propose to take Questions Nos. 94, 121, 123, 157, 164 and 171 together.

The Money Advice and Budgeting Service (MABS) provides assistance to people who are overindebted and need help and advice in coping with debt problems. There are 52 independent companies nation-wide operating the service with a budget of over €16 million in 2006. Many voluntary and statutory bodies such as the Society of St. Vincent de Paul, the Community Welfare Service, Citizens' Information Centres, Centres for the Unemployed and local authorities work closely with the programme. The credit union movement has been a key partner in MABS since its inception and their involvement and support is central to the development and success of the service.

Last year, almost 27,000 people availed of the service as compared with 18,000 in 2001. The growth in demand for the service can be attributed to the increase in the availability of credit generally in the economy and to the quality of the service provided by the MABS advisors. 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.

The issues that give rise to problems of over-indebtedness for people are highly complex. The cost and availability of credit for people on low incomes and the barriers they face in accessing mainstream and cheap forms of credit add to the difficulties these people encounter in managing their finances.

I have held discussions with a number of key interests including the Irish League of Credit Unions and the Financial Regulator about these issues. One outcome of these consultations is that research has been initiated by the Financial Regulator with the Combat Poverty Agency to find out more about the nature and the extent of financial exclusion in Ireland and the barriers faced by people on low incomes in accessing a wide range of financial services. The report will be available to the Financial Regulator shortly. The findings of the research, together with the comprehensive statistical data now emerging from the new MABSIS information system will make a significant contribution to our knowledge about the problems of debt in Ireland and the situations that leave people on low incomes vulnerable to high cost credit services.

I plan to bring proposals to the Government before the end of the year to establish a MABS board on a statutory basis while retaining the voluntary input so vital to MABS. The research findings will be considered specifically in this context.

Furthermore, my Department will consult with the Financial Regulator and other key interests on what options are available to me to strengthen the role of MABS in tackling the problems which arise for people on low incomes in getting access to the full range of mainstream financial services that is available to the wider community.

The MABS is highly regarded and respected and it is important that this continues to be the case. I believe the support structure put in place by my Department for the MABS in recent years has worked well for clients of the service, for local management and for the staff.

My proposals for legislation aim to build on the best features of the MABS model of service to the public. The proposals will combine a continuation of local voluntary involvement with strong national leadership and ensure a high quality, coordinated budgeting and advice service for the future, in particular for people on low incomes. The proposals for the new legislation will take account of the very significant developments which have taken place in MABS in recent years. They will be informed by the outcome of consultations and the expert views of key MABS interests including money advisors, MABS voluntary boards of management and other stakeholders such as the credit union movement and the Financial Regulator. The proposals for the legislation will take account of best practice in corporate governance for a customer focused service that provides value for money for the taxpayer's investment and meets the challenges posed by the rapidly changing face of debt in 21st century Ireland.