Terence Flanagan (Dublin North East, Independent)
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109. To ask the Minister for Justice and Equality her views on the success to-date of the Insolvency Service of Ireland; if new legislation will be introduced to strengthen the service; and if she will make a statement on the matter. [40826/14]

Frances Fitzgerald (Dublin Mid West, Fine Gael)
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The Insolvency Service of Ireland (ISI) has already made a very important impact, in that its establishment opened up the conclusion of informal debt deals between debtors and creditors. Creditors were not offering debt restructuring deals to people struggling with debt, even at the informal level, before the Insolvency Service opened its doors. Now they are. That is a key change.

The uptake of the new formal insolvency solutions provided under the Personal Insolvency Act has, so far, been substantially slower than expected. This is a matter of concern, but it is one which ISI has fully acknowledged and is taking steps to address.

Recent qualitative research undertaken for ISI has confirmed three important obstacles to the uptake of insolvency measures. Firstly, up-front charges for insolvency and bankruptcy seem to be a barrier in practice in the Irish context, even though they are largely equivalent to those charged in other jurisdictions. Secondly, it would appear that many people are struggling to pay their debts unaided, and feel ashamed - which, of course, they should not - to seek an arrangement of any kind. Thirdly, people stressed by serious debt problems easily become isolated from mainstream media, and many have not been aware that insolvency solutions can help them.

I have just approved a package of immediate, concrete measures to address these barriers. Regarding the costs barrier, I have agreed to waive all fees previously payable to either the ISI or the courts by a debtor who applies for any of the debt solutions available under the Personal Insolvency Act – a Personal Insolvency Arrangement, a Debt Settlement Arrangement or a Debt Relief Notice. This waiver was announced earlier this month by ISI, and takes effect until the end of 2015, when it will be reviewed.

ISI has also announced that for the same period, it will provide a contribution of 750 euro to defray the cost of a Personal Insolvency Practitioner, if a reasonable insolvency proposal by a debtor is refused by creditors. The debtor should not be faced with a bill arising from the creditor's refusal in this situation.

I hope to shortly be in a position to also announce reductions in bankruptcy costs.

As regards the information barriers, ISI has just launched a targeted nationwide information campaign which will run in a series of locations around the country, using townhall meetings and local media. It is designed to reach deeply indebted households more effectively, to directly address their concerns and to demonstrate through personal testimony that the Insolvency Act remedies are available and are working to help people out of their difficulties.

The initial indications are that these practical measures are already making a substantial difference, and my Department and ISI will continue to assess their impact.

More broadly, I continue to keep all aspects of the personal insolvency legislation under careful ongoing review. The Statement of Government Priorities 2014-2016 provides, in particular, for the completion of a review of the operation of the Insolvency Service by the end of this year, to ensure that the Service has the powers needed to support families willing to work their way through their debt problems.