THE GOVERNMENT’S proposed changes to the laws on personal insolvency and mortgage debt are welcome but should include an independent authority to provide binding solutions, said Fianna Fáil justice spokesman Dara Calleary.
In a statement, Mr Calleary said Fianna Fáil had been calling for action on this issue for some time and had brought “comprehensive” legislation before the Dáil in October. “The glaring omission in the proposals is the absence of any independent authority to provide binding solutions in situations where a citizen in serious debt is unable to come to agreement with his or her creditors.
“This should not be a party political issue. I am urging the Government to look again at the Fianna Fáil proposals in this regard.”
Sinn Féin also gave a qualified welcome to publication of the heads of the Personal Insolvency Bill, which the party’s justice spokesman Jonathan O’Brien said was “long overdue”.
“It is absolutely essential that the timeframe indicated by the Minister is held to. We cannot continue to put off addressing the problems of those who cannot meet their mortgage commitments and are facing mountains of debt.” Mr O’Brien added: “It is high time that the State moved towards a more humane approach to bankruptcy, and I would hope the Government continues to work on this issue rather than leaving it on the long finger like they have done up to now.”
Fine Gael TD Seán Kyne said the Money Advice and Budgeting Service (Mabs) should be given a more central role in the personal insolvency legislation.
“Mabs already has a network of support offices in place throughout the country. Its employees are highly experienced at assisting people who are over-indebted or in financial difficulty.
“More significantly, Mabs is the only non-profit, independent agency carrying out such an important service. This is in stark contrast to the emergence of several private companies who offer their services for fees and charges to vulnerable people.
“Ireland was one of the first countries in Europe in which the government established an impartial, comprehensive and, above all, free-of-charge advice and support service such as Mabs,” the Galway West TD added.
Tánaiste and Minister for Foreign Affairs Eamon Gilmore said the proposed legislation “will help the Government achieve its objective of keeping distressed mortgage holders in their home during this crisis, in so far as it is practicably possible”.
He added: “This also gives lenders certainty about the Government’s direction in that it is in their interest to start reaching voluntary and realistic solutions with borrowers now, rather than face losing their security through a borrower’s bankruptcy down the road.
“Alone this legislation is not the solution to the country’s mortgage arrears problems, but it does form a crucial part of it.”
