Seán Ó Fearghaíl (Kildare South, Fianna Fail)
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Question 98: To ask the Minister for Community, Equality and Gaeltacht Affairs the consideration she has shown to the recent findings of a study into financial exclusion and over indebtedness in Irish households commissioned by her; and the measures she will take to tackle over-indebtedness. [8097/11]

Frances Fitzgerald (Dublin Mid West, Fine Gael)
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My Department commissioned the study Financial Exclusion and Over-indebtedness in Ireland from the Economic and Social Research Institute, as part of its remit to monitor poverty under the National Action Plan for Social Inclusion 2007-2016 . The study uses data specially collected in the 2008 Survey on Income and Living Conditions.

Financial exclusion is a relatively new policy concept in Ireland and reflects the increasing importance of financial services in everyday life. The study explores four dimensions of financial exclusion: access to a bank current account, access to credit, ability to save and access to housing insurance. The study shows that: - 20 per cent of Irish households do not have access to a bank current account; - half of households are unable to save; - a quarter of households do not have home insurance;

- a tenth of households do not have access to credit; and

- low income groups have higher levels of financial exclusion.

Household over-indebtedness was a second theme in this study. Over-indebtedness refers to a persistent inability to meet essential living expenses and debt repayments. Over five per cent of households are over-indebted, while eight per cent have persistent arrears for utility bills, housing payments and personal loans. Low income, rather than high consumption, is the main factor in over-indebtedness, along with a sudden income drop.

Financial exclusion and over-indebtedness are key policy issues in the current economic situation. The Government for National Recovery 2011-2016 proposes a range of measures which can help address these issues including more support for homeowners with distressed mortgages, a strengthened role for the Money Advice and Budgeting Service and a strategy to tackle fuel poverty.

The findings of the research were discussed at a national conference attended by key stakeholders in March 2011. In addition, arrangements have been made to disseminate the findings of the study to all Government Departments with a relevant policy remit, including the Financial Inclusion Steering Committee, convened by the Department of Finance. The research report has been placed in the Oireachtas library and is available on-line at www.pobail.ie , along with a short research briefing in English and Irish.