Jack Wall (Kildare South, Labour)
Link to this: Individually | In context

Question 49: To ask the Minister for Finance if, in view of the relevant commitment given in the Revised Programme for Government, he intends to bring forward proposals for an extra-judicial debt-settlement mechanism; and if he will make a statement on the matter. [44877/09]

Brian Lenihan Jnr (Dublin West, Fianna Fail)
Link to this: Individually | In context

It is a particular priority of the Government to ensure as far as possible that difficulties in relation to mortgage arrears do not result in legal proceedings for home repossessions. Home repossession should be and generally is the last resort for the lender. The preferred method of dealing with cases of arrears should be early intervention and engagement.

The commitments contained in the revised Programme for Government span the broad area of personal debt management and its legislative framework. A number of the commitments relate to the responsibilities of a number of different Government Departments. This will require close collaboration in the period ahead.

In the revised Programme for Government we have stated that we will be:

· Introducing new measures to protect families having difficulties with their home mortgage payments;

· Examining ways of expanding the existing options available for dealing with debt situations;

· Examining ways of expanding existing state sponsored mortgage-support measures.

We have also committed to reforming the debt enforcement system in light of the deliberations of the Law Reform Commission on this issue in their recently published Consultation Paper on Personal Debt Management and Debt Enforcement.

I would like to point out that, as Minister for Finance, I have no function in relation to personal bankruptcy law. This is a function of the Minister for Justice, Equality and Law Reform.

The Government is committed to progress all of these issues with a view to early results.