Mick Wallace (Wexford, Independent)
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Question 118: To ask the Minister for Justice and Equality the way he intends to ensure that the main banks are compelled to engage meaningfully in the proposed Personal Insolvency Arrangement in the Personal Insolvency Bill as they currently have an effective veto over any proposals and there is no independent appeals system proposed; and if he will make a statement on the matter. [22612/12]

Alan Shatter (Dublin South, Fine Gael)
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The Personal Insolvency Bill, the Heads of which I published on 25 January, 2012, introduces a number of new non-judicial debt settlement systems. One of those systems - the Personal Insolvency Arrangement - provides for the agreed settlement of both secured and unsecured debt of €20,001 to €3 million with one or more creditors.

The detail of the proposed personal insolvency reform measures, including those applying to the voting thresholds in the Debt Settlement Arrangement and Personal Insolvency Arrangement systems, are still under consideration, and the final text of the Bill remains to be considered by Government. This consideration will also have regard to the submissions received during the public consultation process and the report of the hearings of the Oireachtas sub-committee in relation to the General Scheme of the Bill.

The reforms contained in the Personal Insolvency Bill will be applicable to the generality of mortgage and personal debt situations and not just to situations where credit was extended by covered banks.

Regarding the governance framework of the covered banks, while the Minister for Finance is a significant shareholder, those banks remain independent commercial entities and decisions on the handling of individual loans remain a matter for the Boards and management of the particular institutions. When the proposed new personal insolvency framework is in place it will remain a matter for the individual banks to make decisions on proposals to address unsustainable debt in individual non-judicial and judicial debt resolution cases.

I understand, however, that the Central Bank is engaging with each regulated mortgage lender to require them to put in place mortgage arrears resolution strategies and implementation plans to ensure that they will provide appropriate, fair and sustainable solutions, such as those suggested in the "Keane Report" and/or other options for their mortgage customers experiencing mortgage difficulty. These initiatives will be available to all mortgage holders and not just to those with mortgages from banks where the Minister for Finance is a significant shareholder.

I can assure the Deputy that the Bill remains a legislative priority for the Government and the revised time frame for publication of the Bill is now the end of June next with the strong intention to commence Second stage in the Dáil prior to the Summer recess to facilitate early passage of the legislation through the Oireachtas in the Autumn session.