For the past few years consumers have been offered all sorts of deal to entice them to buy cars. Some deals are better than others. Personal contract plans, PCPs, encompass the initial front-loading cost of buying a new car and an expected residual value to reduce the amount borrowed. Dealers in Ireland are saying that as many as 70% of new car sales are based on PCPs. They are saying also that up to 30% of car finance packages are based on PCPs. Some car loan providers have better practices than others. Some require a 20% deposit, while others require less. A customer normally makes a monthly payment and must at the end of the term of the plan make a final substantial payment. Ownership does not transfer until the last payment is made. The plans normally last for about three years. There was a surge in car sales in 2014. Many of those who bought cars in 2014 are coming to the end of their PCPs and, as per the contract, are now being forced to make a bubble payment.

Now it appears US regulators are very worried about this issue and some in the United States financial services market are predicting a possible financial collapse as a result of the number of defaults on car loans. The car loan market in the United States is worth $1.3 trillion, but the big banks seem to be pulling back a little because many consumers have taken on more debt than they can handle. We know that the Bank of England is also concerned about the issue and examining it in terms of the impact it could have on the financial market. According to media reports, the Society of the Irish Motor Industry is carrying out its own report on the issue. We also know that in Ireland, PCPs are completely unregulated. The story I have set out for the Tánaiste which I have set out before about nervousness in the United States and the United Kingdom and the Government looking the other way is one we have heard before. What is the position on PCPs for consumers purchasing cars? What is the answer for those who may not be able to make the bubble payments that are now arising or will arise next year or the following year? What is the remedy for consumers who have been mis-sold these products in the past few years or who have not received the professional advice they might have expected? That professional advice has not been required by the State because the sector is completely unregulated.

I thank the Deputy for observing the time limit.

I thank him for his interest in the Fine Gael leadership election.

We have a strong interest in it.

I hope all other parties will show the same level of transparency, democracy and excitement in their leadership elections as we have shown in the course of ours.

It is a Punch and Judy show.

The clock is running.

By the way, I believe it is Deputy Thomas Byrne's birthday. I wish him a happy birthday.

The clock is counting down.

The Deputy spoke about personal contract plans. I have noted, as he said, that the issue has been raised in other countries. I have heard the debate in the United Kingdom about them. There is quite a lot of concern that people may be taking on unmanageable debt. I appreciate the Deputy raising the point which has not received very much coverage in this country but it is one to which the public needs to be alerted and of which it needs to have a greater awareness. There is also a need for awareness of the matter at Government level. We are talking about a financial product. Like all financial products, we must ensure people are properly informed and are not taking on unsustainable debt. PCPs can be very good because they make new cars affordable and many are happy to enter into such arrangements. However, if they are too easily available or people are not aware of the consequences and cannot afford to repay their loans, as has been found in other countries, they can lead to people taking on unsustainable debt. It is essentially the responsibility of the Financial Regulator who oversees such products. If there are issues arising or it is found that the products offered in this country are not reaching the appropriate criteria and standards, it is up to the Financial Regulator to take further action. I will raise the matter with the Minister for Finance and ask him to revert directly to the Deputy because it is a very real issue which, as I said, has created considerable concerns in the United Kingdom and elsewhere.

I also thank the Tánaiste for observing the time limit.

With all due respect to the Tánaiste, that is an utterly pathetic answer. PCPs in Ireland are not regulated as specific products. The Central Bank is telling journalists who ask the question that it is not responsible, that they are a matter for the Competition and Consumer Protection Commission. The Government has no figures whatsoever for how many of these contracts have been entered into and we cannot get them. My colleague, Deputy Michael McGrath, has written to the Central Bank to see if figures can be obtained. That is the reality; it is like the Wild West and the Government is sitting back and doing nothing. If someone goes into a garage or to a motor dealer, the encounter is not regulated in any way. This has been a huge gap in the market in terms of regulation in the past few years. Fingers have been pointed at other parties for standing over a lack of regulation but this has been happening since 2013 or 2014 since these products came onto the market.

There has been no Government regulatory response.

There are significant worries in the United States, the Bank of England and the motor dealers' association in Ireland. I assume that if people cannot pay these bubble payments and cars go back on the market it will have severe adverse consequences for motor dealers. The truth is that second-hand car prices are collapsing because of the large numbers of cars being imported from the UK. That is having a very negative effect and there are no answers from the Government.

As the Deputy is well aware, there has been an increase in car sales although there has been somewhat of a decrease this year.

There are no figures on finance.

Yes, but anybody who puts a lending product into the Irish market has a responsibility. This issue is now becoming more relevant because of the increase in car sales. These products are available. As the Deputy said, people can access finance in an easier way than before when they buy cars from garages. Given the improving economy, people want to change their cars and so on.

The Deputy has made a relevant point. It is an area that needs further examination. I will see what the Department of Finance has to say about it and whether figures can be collected in a way that is appropriate in respect of this issue. As I said to the Deputy, I recognise the potential risk for people in terms of debt and taking on debt that is unsustainable.

It is important that there is transparency. If regulation is needed, it should be put in place. As the Deputy said, this is an emerging area. I will ask the Minister to revert directly to the Deputy and see if figures can be gathered and an assessment can be made as to whether there is a problem that would put people at risk in terms of this product.