Shane McEntee (Meath East, Fine Gael)
Link to this: Individually | In context

Question 70: To ask the Minister for Social and Family Affairs the position regarding the proposals for reform of the Money Advice and Budgeting Services as outlined in the Programme for Government; and if he will make a statement on the matter. [32287/07]

Joe Costello (Dublin Central, Labour)
Link to this: Individually | In context

Question 95: 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. [32180/07]

Pat Rabbitte (Dublin South West, Labour)
Link to this: Individually | In context

Question 125: To ask the Minister for Social and Family Affairs the action he is taking to combat the prevalence of debt among lone parents and large families; and if he will make a statement on the matter. [32188/07]

Caoimhghín Ó Caoláin (Cavan-Monaghan, Sinn Fein)
Link to this: Individually | In context

Question 135: To ask the Minister for Social and Family Affairs if there is yearly statistical data on the number of people seeking advice from the Money Advice and Budgeting Service; and if the number of house repossessions in recent times has coincided with an increase in the number of people asking for help from the service. [32307/07]

Martin Cullen (Waterford, Fianna Fail)
Link to this: Individually | In context

I propose to take Questions Nos. 70, 95, 125 and 135 together.

The Money Advice and Budgeting Service (MABS) is the main Government funded service which provides assistance to people who are over-indebted and need help and advice in coping with debt problems. There are 53 independent companies nationwide with over 240 money advice staff operating the service. Many voluntary and statutory bodies, such as the Society of St Vincent de Paul and the credit unions, work closely with the programme.

Last year, MABS provided services to almost 12,500 new clients throughout the country. To date, in 2007, some 11,500 new clients have approached the service. The number of active cases is 19,200. In 2006, €16.4 million was provided to fund the service and in 2007 the annual allocation was increased to €17.67 million to assist the MABS in dealing with its workload.

Statistics show that 22% of new clients that approach the MABS are lone parents with children and a further 16% are married with children. People with mortgages make up 21% of the MABS clients but there is no statistical data on the number of clients that seek the support of MABS because of house repossessions.

The issues that give rise to problems of over-indebtedness for people are highly complex. Research shows that lack of information about money management can be a contributory factor in many cases. 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 people encounter in managing their finances.

MABS is making a unique and expert contribution to meeting the needs of people with debt difficulties in today's society. This includes promoting greater awareness about household budgeting and shaping the strategies that need to be put in place, including those of services providers, such as the banks and the credit unions, to ensure greater financial inclusion in Ireland.

The proposals I am developing for a new structure for the MABS will include initiatives in these areas to improve the situation of people on low incomes in securing access to affordable credit.

In line with the Programme for Government, my proposals will build on the best features of the MABS model of service to the public. They will take account of the considerable changes that have taken place in the corporate governance environment since the 2002 MABS Bill. My objective is to ensure a high quality, coordinated budgeting and advice service that represents value for money for the taxpayer's investment and is geared to meet the challenges posed by the changing face of debt in Ireland.