Personal insolvency service and MABS
Tom Fleming urges the Government to involve MABS rather than a United Kingdom-based company in assisting distressed mortgage holders under the insolvency reforms. The Taoiseach acknowledges MABS’s valuable work but defends the planned Insolvency Service arrangements.
There is serious concern at present regarding the fact that it appears the Central Bank is negotiating with a United Kingdom-based company for it to act as an intermediate on behalf of the consumer in new settlements. There are 750 people in mortgage distress on a pilot scheme. They have been selected for negotiation to settle their debts.
Comment on this
This relates to the insolvency legislation. There are several reasons this is problematic. First, MABS, our money management agency, has been overlooked in this regard. The British charity debt company has been dealing with unsecured lenders up to now but it appears to be totally unsuitable to carry out this particular role.
Comment on this
I will be brief. MABS is an outstanding organisation with considerable experience. It has performed excellently on behalf of the public. It is shameful that we are considering anyone else. I call on the Minister for Finance, Deputy Michael Noonan, and the Taoiseach to intervene urgently to put our MABS organisation to the forefront in this. It has already been overlooked as the intermediate in the Personal Insolvency Bill.
Comment on this
That has gone through. Mr. O'Connor, the director, has been on the airwaves on numerous occasions setting out what the conditions are, what the Insolvency Service of Ireland is about and the services it will provide. There is also a telephone line and a website available for members of the public who are using this service extensively. I expect the insolvency agency will be open for dealing with cases in June.
I agree with Deputy Fleming that MABS has provided an excellent service for people over many years. However, in many cases the personnel at the MABS offices might not be appropriate candidates for dealing with the insolvency agency. It might be, and it has been, possible for MABS to bring about solutions for particular types of debt problem that persons might have at the MABS level. The Minister for Social Protection, Deputy Burton, monitors the work of MABS on a regular basis and interacts with it frequently.