Written answers

Tuesday, 24 May 2016

Department of Justice and Equality

Legislative Measures

Photo of Brendan GriffinBrendan Griffin (Kerry, Fine Gael)
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80. To ask the Minister for Justice and Equality when she will bring the Assisted Decision-Making (Capacity) Act 2015 into effect; and if she will make a statement on the matter. [11497/16]

Photo of Frances FitzgeraldFrances Fitzgerald (Dublin Mid West, Fine Gael)
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The Assisted Decision-Making (Capacity) Act 2015 was signed into law by the President on 30 December 2015 but has not yet been commenced. New administrative processes and support measures, including the setting up of the Decision Support Service within the Mental Health Commission, must be put in place before the legislation comes into force. The Mental Health Commission is an agency under the Department of Health, and the Department of Justice & Equality will be liaising with the Department of Health in bringing the service into operation, including in respect of the financial implications. It was indicated during the debates on the Bill in the Seanad that commencement of this Act is planned for the latter half of 2016 and this remains the position.

The Deputy will appreciate that careful planning and groundwork has to be put in place to ensure that the commencement of the legislation is correctly, appropriately and effectively handled. In this regard, my Department recently engaged in a high level meeting with the Department of Health in order to progress the process of getting the Decision Support Service up and running as soon as possible through co-operation between the two Departments.

Photo of Carol NolanCarol Nolan (Offaly, Sinn Fein)
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81. To ask the Minister for Justice and Equality to reform the Land and Conveyancing Law Reform Act to prevent the repossession of family homes; and if she will make a statement on the matter. [11549/16]

Photo of Frances FitzgeraldFrances Fitzgerald (Dublin Mid West, Fine Gael)
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The Deputy will be aware of the commitments in the new Programme for Government including in relation to keeping families in their homes and avoiding repossessions insofar as is possible, establishment of a new national service to standardise supports available to borrowers in mortgage arrears, establishment of a dedicated new court to handle mortgage arrears and other personal insolvency cases, review of the thresholds and processes for Personal Insolvency Arrangements and review the Central Bank's Code of Conduct on Mortgage Arrears. I will be working closely with my Government colleagues in the coming months towards achievement of these aims.

The position is that the Land and Conveyancing Law Reform Act, which came into operation on 1 December 2009, applies only to mortgages created after that date and any amendments to this legislation would not be effective in dealing with cases of mortgage arrears which are coming before the courts. For that reason, I would like to draw the Deputy's attention that a number of measures have already been put in place with the aim of providing assistance to those finding themselves in mortgage arrears. These include:

- enactment on 28 July 2015 of the Personal Insolvency (Amendment) Act 2015, and commencement on 20 November 2015 of the new Court review procedure under section 115A which applies to cases in which lending institutions refuse a personal insolvency proposal on the borrower’s home;

- development of the Money Advice and Budgeting Service (MABS) as the Government’s ‘one-stop shop’ point of information and guidance for homeowners in mortgage arrears, working closely with the Insolvency Service;

- establishment and staffing of Dedicated Mortgage Arrears MABS centres in key locations with nationwide coverage, which offer specialised expertise on mortgage debt; and

- the presence of MABS and the Insolvency Service at courthouses to provide information and ‘signposting’ support for householders issued with repossession proceedings involving their homes (operating nationwide since 1 October last, following a successful pilot in July 2015). This initiative is facilitated by the Courts Service, and is currently provided for all Circuit Court repossession hearings.

In addition, the Government will shortly be putting in place a new Government-funded Scheme to help those who are insolvent, and in mortgage arrears on their home, to access independent expert financial and legal advice. The new scheme has 3 components:

Provision of financial advice and assistance

This involves the provision of advice and assistance from a Personal Insolvency Practitioner, or other financial adviser as appropriate, drawn from panels agreeing to provide specified levels and amounts of services under the Scheme at fixed cost. This will be provided without cost to an insolvent borrower, under a ‘voucher’ system, and will be accessed through MABS working in conjunction with the Insolvency Service and the accountancy bodies.

Provision of legal advice and assistance

This involves the provision of advice and assistance from a solicitor, drawn from panels to be set up by the Legal Aid Board, who agrees to provide specified levels and amounts of services under the Scheme at fixed cost. The scheme will provide assistance and representation for insolvent borrowers in repossession proceedings involving their home, via a panel of ‘duty solicitors’ at repossession hearings, operated by the Legal Aid Board.

Again, this assistance will be provided without cost to an insolvent borrower, under a ‘voucher’ system, and will be accessed through MABS, working in conjunction with the Legal Aid Board.

Provision of legal aid

This involves the provision for legal aid for insolvent borrowers seeking the new Court review under s. 115A Personal Insolvency Acts, where a borrower’s proposal for a Personal Insolvency Arrangement including mortgage arrears on their home is refused by their creditors. This component will be operated by the Legal Aid Board.

The overall objective of the new Scheme is to help those who are unable to pay their debts in full as they fall due and are in serious mortgage arrears on their homes, to access independent expert financial and/or legal advice and assistance, which will help them to find the best possible solutions, with the aim of remaining in their homes where possible.

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