Written answers

Tuesday, 28 February 2017

Department of Justice and Equality

Legislative Programme

Photo of Pearse DohertyPearse Doherty (Donegal, Sinn Fein)
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122. To ask the Minister for Justice and Equality when the mortgages special court Bill and courts (mortgage arrears) Bill will be published; and if she will make a statement on the matter. [9782/17]

Photo of Frances FitzgeraldFrances Fitzgerald (Dublin Mid West, Fine Gael)
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I can confirm to the Deputy that the establishment of a dedicated new court to sensitively and expeditiously handle mortgage arrears and other personal insolvency cases continues to be examined by my Department. As the Deputy will be aware, the allocation of judicial resources and the scheduling of court cases is a matter for the Presidents of the courts and the judiciary who are, under the Constitution, independent in the exercise of their judicial functions. The President of the Circuit Court has been very helpful as regards consideration of dedicated new court arrangements for repossessions and the option and implications of the use of pre-existing legislative powers to implement a system of specific court sittings for repossessions at specific venues on specific dates. This is being pursued at present between my Department and the Courts with a view to possible new arrangements for the Easter law term where appropriate and having regard to constitutional constraints.

Furthermore the Government, at its meeting of 6 December 2016, decided to reassign, by appointment, three specialist judges of the Circuit Court as ordinary judges of the Circuit Court to fill three existing vacancies and so there are currently no vacancies in the Circuit Court. The Department is actively involved in discussions, including with the judiciary and Courts Service, as regards what progress can be made on introducing the proposed dedicated arrangements for mortgage arrears cases which I hope to bring to Government for consideration in the near future.

A key element of the commitments in the Programme for Government is, as the Deputy will also be aware, putting in place a national mortgage arrears resolution service and priority was given last year to getting the new national Mortgage Arrears Resolution Service (Abhaile) up and running. The service, which forms part of the Programme for Partnership Government commitments on mortgage arrears, ensures that people who are at risk of losing their home have access to free independent financial and legal advice and assistance. The objective is to help these homeowners to identify and put in place solutions to their mortgage arrears, with priority to helping them remain in their home wherever possible.

On 27 February 2017 a new national information campaign went live, designed to reach out to homeowners in mortgage arrears and further raise awareness of the highly effective Abhaile service. This information campaign wants to ensure that everyone who needs assistance and may be at risk of losing their home is aware that free advice and support is available through the Money Advice and Budgeting Service (MABS) helpline and MABS offices across the country. Homeowners who are at risk of losing their homes due to mortgage arrears, including those facing repossession proceedings, can contact MABS which will provide support and advice. Support available includes in-house dedicated Mortgage Arrears advisers in MABS offices across the country, specifically to assist and negotiate with financial institutions on the borrower's behalf.

MABS can also provide access to free independent financial advice and assistance on personal insolvency and bankruptcy from a personal insolvency practitioner (PIP), and to free independent legal advice from a solicitor, under a 'voucher' system. The advice and assistance is provided by a PIP or solicitor from expert panels, established under the Scheme respectively by the Insolvency Service of Ireland and by the Legal Aid Board. The service also includes free support and assistance at Circuit Court repossession court lists country-wide, with MABS court mentors in attendance to provide help and advice to borrowers attending, and a 'duty solicitor', from a Legal Aid Board panel, to provide legal assistance in court to unrepresented borrowers in repossession proceedings. The scheme also offers legal aid to borrowers seeking the new Personal Insolvency court review under the Personal Insolvency (Amendment) Act 2015. To date some 4,800 individual vouchers have been provided under under Abhaile for free financial or legal advice and assistance on home mortgage arrears since 22 July 2016.

A further key element relates to the power of a court to impose mortgage arrears solutions for those in arrears and it is critical to note that use of the key statutory provision allowing for imposition of debt solutions involving a mortgage, where the solution has been rejected by the creditors, is increasing due to the availability of the Abhaile service since last October. I am referring to the "section 115A" procedure put in place under the 2015 Personal Insolvency legislation which allows the Circuit Court, in defined circumstances, to impose a personal insolvency arrangement (PIA), on application from the debtor, where the proposed arrangement has been rejected by the creditors.

I would also like to point out to the Deputy that early indications, while based on small initial samples, suggest that the new Abhaile service is reaching those most at risk of losing their homes, and particularly the cohort of those who are in mortgage arrears equivalent to 720 days or more. They also suggest that access to free, independent expert help, and to statutory protection against creditor pressure for those who are engaging, is a significant relief for those at risk, and that independent advice is identifying solutions which offer better outcomes for the homeowner, often enabling them to remain in their homes. Representative outcome data for the Abhaile Service is not yet available, but this information is being tracked and collected and full analysis will be available at a later date.

My Department, together with the Department of Social Protection, leads both operational oversight and governance steering groups for the new Abhaile service and its effectiveness and impacts are being closely monitored as part of these processes. Furthermore, my Department continues to pursue the remaining aspects of the Programme for Government commitment, including the identification of any necessary legislation, in consultation with the Office of the Attorney General, bearing in mind constitutional and legal aspects, with a view to further implementation measures in the coming months.

Photo of Pearse DohertyPearse Doherty (Donegal, Sinn Fein)
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123. To ask the Minister for Justice and Equality when the the courts and civil law (miscellaneous provisions) Bill will be published; and if she will make a statement on the matter. [9783/17]

Photo of Frances FitzgeraldFrances Fitzgerald (Dublin Mid West, Fine Gael)
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Work on the preparation of the General Scheme of a Courts and Civil Law (Miscellaneous Provisions) Bill is at an advanced stage at my Department. It is anticipated that the General Scheme will contain a range of provisions, many of them technical in nature. These are expected to relate to such matters as electronic courts services and some amendments to gaming legislation along with a number of other matters for inclusion in the Bill which are being finalised. I expect to be in a position to bring the General Scheme of the Bill before Cabinet in March for approval both to to publish it and to submit it for detailed drafting to the Office of the Parliamentary Counsel. Once so approved, the full contents of the proposed Courts and Civil Law (Miscellaneous Provisions) Bill will be made publicly available including for pre-legislative scrutiny as may be considered appropriate by the Oireachtas Joint Committee on Justice and Equality.

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