Vol. 378 No. 6
asked the Minister for Social Welfare if in view of his decision in response to the initiative of Mr. Jim Mitchell, TD, in Dáil Eireann in December 1987 on the Committee Stage of the Social Welfare (No. 2) Bill, 1987, in relation to the problem of moneylending, any immediate changes to legislation are envisaged especially in relation to allowing immediate interest free loans through the supplementary welfare system to very needy families in times of special need.
35.
asked the Minister for Social Welfare the terms of reference of the proposed task force on moneylending which is to be set up under the auspices of the Combat Poverty Agency; when it is expected that the task force will report; if pending the report of the task force it is proposed to make the social welfare system more flexible in order to assist people in avoiding moneylenders; and if he will make a statement on the matter.
I propose to take Questions Nos. 63 and 35 together.
As Minister for Social Welfare I have been concerned for some time about the activities of moneylenders, particularly as they affect social welfare recipients. I have, as I proposed during the debate on the Social Welfare Bill before Christmas, asked the Combat Poverty Agency to carry out a detailed study of moneylending and the problems associated with it. The agency recently submitted their detailed proposals for the study, which were drawn up following consultations with a number of relevant organisations and these proposals have been approved. The agency expect that the results of the study will be available by next September.
The question of whether changes in the social welfare system are required in response to the moneylending problem is one of the areas which the agency will be addressing in their research. I am keeping this matter under review and will be guided by the outcome of the research.
Deputies will be aware that I recently announced the allocation of £100,000 from national lottery funds to the Society of St. Vincent de Paul for personal development and home management courses. This will provide practical advice and assistance, including financial advice, to some 10,000 families this year.
I appreciate the Minister's response to the proposal I made in December. While the Combat Poverty Agency are carrying out their study, will the Minister make provision on an exceptional basis for the supplementary welfare system to cope with urgent cases of extortionate moneylending? Has he had or will he consider discussions with the league of credit unions to see what role they might have to play in alleviating this awful problem?
The Combat Poverty Agency will be consulting in the course of their study the credit unions, the Society of St. Vincent de Paul, the Garda and various other people. I will be having discussions at the same time so that I will be in a position to take action as early as possible. The Deputy will be aware that a considerable amount of discretion is given under the supplementary welfare allowance scheme in relation to individual cases. Some of these cases can be dealt with in that way. The Deputy's proposal is much wider and will certainly have to be considered in the context of the study by the Combat Poverty Agency.
Would the Minister not agree that my proposal was prompted in the first place by the Department's refusal to sanction an initiative by community welfare officers in bailing out two women who were under incredible pressure from moneylenders, unknown to their husbands and families? This brave and intelligent initiative did not succeed because the Department said there was no legislative backing for such a move. If that is so, will the Minister take the opportunity in the upcoming Social Welfare Bill to authorise such discretionary payments by social welfare officers?
Jail the moneylenders.
Yes, jail them too.
I have been very conscious of the problems caused by moneylenders, as I mentioned before Christmas. I raised the matter several times while in Opposition but could not get anything done. Consequently I am very glad to be able to get something under way. I am also glad of the Deputy's support. I assure him that I will certainly be seeking practical solutions.
The Minister said there is discretion but there is not.
There is discretion under the scheme. Whether it is being availed of is another matter.
That is not my information.
