Olwyn Enright (Laois-Offaly, Fine Gael)
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Question 699: To ask the Minister for Social and Family Affairs the progress in relation to the programme for Government commitment to enhance the Money Advice and Budgeting Service by establishing it under legislation and that MABS would be given a central role in increasing access to affordable credit for low income earners and social welfare customers; and if she will make a statement on the matter. [29953/09]

Mary Hanafin (Dún Laoghaire, Fianna Fail)
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The Money Advice and Budgeting Service (MABS) 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 250 money advice staff operating the service. Almost €18 million has been provided in 2009 to assist the MABS in dealing with its workload.

The MABS provides a high quality personal service to the public and makes a difference to peoples lives. However, it has been recognised for some time that the Service needs a proper legislative basis and structure. The Programme for Government envisaged that such a new structure for the MABS would involve strong national leadership and would maximise the current local voluntary involvement in the service.

The Government has decided that this can best be achieved by placing the MABS with the Citizens Information Board. The MABS and Citizens Information Centres complement each other well as both are involved in providing information, advice and advocacy services to the public. In addition, the Citizens Information Board has a long association with the MABS at both national and local level and was involved in establishing some of the original MABS pilot projects. The relevant legislative provisions are contained in part 4 of the Social Welfare (Miscellaneous Provisions) Act, 2008 which extends the functions of the Citizens Information Board to include responsibility for the provision of the MABS. The transition process has progressed satisfactorily and is on schedule for completion of the transfer of responsibility from the Department to the Citizens Information Board on 13th July 2009. The regulation of financial institutions, including the banks, sub prime mortgage lenders and the credit unions, is part of the statutory remit of the Financial Regulator. Legislative issues in relation to the Financial Regulator are dealt with by the Minister for Finance.

MABS will continue to work closely with key stakeholders including the Financial Regulator and the Irish Banking Federation to ensure that the best advice is available to people encountering debt difficulties. MABS is represented on the Financial Regulator's Consumer Consultative Panel and the Financial Education Steering Group. MABS was also recently invited to participate in a National Payments Implementation Plan Advisory Group workshop to examine the introduction of Basic Bank Accounts as part of the recapitalisation of financial institutions.

The Citizens Information Board will continue to support the MABS in this work on behalf of people on low incomes as well as providing strong management support to the voluntary and community sector in the provision of a quality local budgeting and advice service that meets the needs of people with debt difficulties.