Personal insolvency legislation
Deputy O’Dea argues that the personal insolvency system is failing and recalls a commitment to amend it. The Minister says it is too early to judge, notes increased bankruptcy applications, and suggests review by the Finance Committee.
The Minister will recall that when the Personal Insolvency Bill 2012 was introduced, a commitment was given that if the system did not work properly the Government would be prepared to change it. Are there any plans for changing in view of the fact that it is clearly not working?
Comment on this
Legislation was promised on the floor of the House to amend the 2012 Bill if it did not work properly. All the evidence indicates it is not working.
Comment on this
On the basis of a commitment given on the floor of the House by the then Minister for Justice and Equality, Deputy Shatter.
Comment on this
It is too early to say that the personal insolvency legislation is not working. It is certainly effective in terms of the number of people who are now applying for bankruptcy. In regard to restructuring loans, it does not yet seem to be dealing with a large quantum of impaired loans but we are in the early days of its operation. I suggest that in the first instance the appropriate committee of the House to examine progress may be the Committee on Finance, Public Expenditure and Reform. I am sure the Minister for Justice and Equality is open to suggestions from that committee on amendments which might improve the efficacy of the legislation.