Frank Crowley
Question:23 Mr. Crowley asked the Minister for Social Welfare the evidence, if any, he has that illegal moneylending is on the decrease in Cork and nationwide.
Written Answers. - Illegal Moneylending.
I have been particularly concerned for some time about the problems of moneylending and indebtedness. I commissioned a report entitled Moneylending and Low Income Families which the CPA published in 1988. I then set up a steering committee to tackle the problem and in 1992, my Department funded the establishment of pilot projects around the country, aimed at building new and more comprehensive approaches to combating the problems of moneylending. Five projects were set up at that time in Cherry Orchard, Dublin city, west Clare, Cork city, Limerick city and Waterford city.
In 1993 we commissioned an evaluation of the first year of operation of the original five projects. The evaluation concluded that these projects were meeting a real need for support and advice for people who were caught in a cycle of debt and despair. A further eight projects were subsequently funded in 1993.
One of the specific conclusions of this evaluation, copies of which are available in the Oireachtas Library, was that there are strong indications that the extent of illegal moneylending is on the decline in Cork city, where we have the longest established project in operation. This view is supported by the money advice project itself, by the local Society of the St. Vincent de Paul, whose work closely involves them with families with debt problems, and by the local Garda authorities. These agencies are closest to the ground and in the best position to judge this matter and I accept their expert knowledge and their assessment of the situation. There are also indications that the extent of illegal moneylending is on the decline in some of the other areas serviced by money advice projects funded by my Department.
I firmly believe that the Government's strategy can break the back of illegal moneylending. Our strategy involves strengthening the law against illegal moneylending, to give the gardaí the powers they need to combat and eliminate illegal moneylending and to give responsibility and resources to the Director of Consumer Affairs to license and monitor moneylenders. This is being done in the Consumer Credit Bill which is making its way through the Oireachtas at present.
The second part of our strategy is to expand the number of money management and debt advice projects being funded by my Department. I have appointed a national co-ordinator in my Department to spearhead the development and expansion of this initiative. Already this year I have approved funding for new projects in west Waterford, Mullingar, Longford-Westmeath, Laois-Offaly and Dundalk. I have also approved in principle the establishment of other new projects in Drogheda, Dundalk, Galway and Sligo and areas of Dublin not served by existing projects. Work is well under way in setting up these projects and I expect to be in a position to announce details shortly.
In addition to new projects already announced for establishment this year, my Department has also received a number of inquiries from other areas about the extension of this service, which are being examined at present with a view to supporting the establishment of further new projects in those areas as the resources available allow.