Joan Burton (Dublin West, Labour)
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Question 118: To ask the Minister for Social and Family Affairs the steps she is taking to counter debt problems in view of the recent findings of a survey by the Financial Regulator to the effect that 37% of people have some degree of difficulty in keeping up with bills and credit and that 13% of adults have found themselves in financial difficulties within the past five years. [24783/08]

Richard Bruton (Dublin North Central, Fine Gael)
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Question 143: To ask the Minister for Social and Family Affairs if there have been discussions between her Department and the Department of Finance on the issue of over indebtedness; and if she will make a statement on the matter. [24744/08]

Mary Hanafin (Dún Laoghaire, Fianna Fail)
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I propose to take Questions Nos. 118 and 143 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. Almost €18 million has been provided in 2008 to assist the MABS in dealing with its workload. In 2007, MABS provided services to almost 12,500 new clients throughout the country and to date in 2008 some 6,600 new clients have approached the service. The MABS National Telephone Helpline, which was launched in October 2007, has dealt to date with over 5,500 calls.

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. Officials of the Department have met, in the past, with the Department of Finance and continue to engage with the Financial Regulator on these matters.

The 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, especially those of services providers such as the banks and the credit unions, to ensure greater financial inclusion in Ireland. The MABS works closely with the Financial Regulator in developing initiatives in this regard. For example the MABS and the Financial Regulator have developed an education programme on money management for Transition Year students which will be rolled out to schools from September 2008.