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Dáil Éireann debate -
Wednesday, 13 Dec 2000

Vol. 528 No. 2

Written Answers. - Proposed Legislation.

Róisín Shortall

Question:

31 Ms Shortall asked the Minister for Social, Community and Family Affairs the timeframe for the passage of the money advice and budgeting service legislation; and the plans he has to encourage the provision of credit for low income families. [29697/00]

My Department has been directly involved in activities to tackle the problems of moneylending and over-indebtedness since 1988 and has been funding the money advice and budgeting service, MABS, programme since 1992. At present the Department is supporting 50 MABS projects, thereby providing a service countrywide.

Each local MABS project is managed by a committee drawn from local voluntary and statutory services and community groups and operates in partnership with other relevant agencies. The projects are independent information and advice providers, rooted in the local community.

The MABS budget has grown from £260,000, six projects, in 1992 to £4,542,000, 50 projects, in 2000. The successes of the service are clear to see.

It is my intention to bring forward very shortly proposals to Government for the establishment of the MABS on a statutory basis with a view to publishing a Bill in mid 2001. This Bill will provide a firm legislative framework for the future development of the service in a structured and effective manner while being sufficiently flexible to support the voluntary management, the sense of community ownership and the independence which are the corner stones of the service. I should stress that I have consulted with the MABS national advisory committee, comprising representatives of all MABS stakeholders, in determining the precise form of my proposals for legislation in this area.

The role of the MABS is to provide advice on money management and through its links with the credit unions to provide access to low cost credit for its clients. Special accounts are administered by the credit unions on behalf of MABS clients. A MABS client who has a special account facility can, in certain circumstances, access a loan from their credit union which is guaranteed by a fund, called the loan guarantee fund, lodged by the MABS in the relevant credit union. The MABS does not disburse funding to individuals. It was never envisaged that it would do so as it would be contrary to its underlying objectives.

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