Dáil Éireann Debate, Wednesday - 15 December 2004
67 Mr. Hogan asked the Minister for Social and Family Affairs the way in which he intends to spend and disburse the once off payment to MABS as announced by him on 1 December 2004; and if he will make a statement on the matter. [33492/04]
View answerMy Department has overall responsibility for the Money Advice and Budgeting Service, MABS, which provides assistance to people experiencing difficulty in meeting repayments on borrowings. There are 52 independent companies nationwide operating the service.
The MABS programme provides money advice to individuals and families who have problems with debt and who are on low income or in receipt of social welfare payments.
The service places an emphasis on practical budget-based measures that help people to move permanently from dependence on moneylenders and to access alternative sources of low cost credit.
MABS has been allocated €12.62 million to ensure the continued development of the service in 2005. This represents an increase of €1.22 million or more than 10% on the 2004 allocation and will help ensure that the service continues to be promoted in an effective way to help the people concerned regain control of their personal finances.
I have allocated a further €700,000 to MABS this year to address two issues. I am concerned that where hardship exists in repayment arrangements, MABS customers receive the most appropriate assistance to deal with the situation. MABS is currently considering ways in which support can be made available to MABS customers who have particular difficulties making repayments to creditors and to establish a mechanism where this can be dealt with in a practical way.
I intend to have a fully automated payment system put in place on a national basis which will allow for MABS employees to make direct payments to creditors on behalf of customers and also provide detailed statistics upon demand. These statistics will be invaluable in aiding the future development of MABS by providing a greater understanding of the issues surrounding indebtedness. This new payment system, MABSIS, will cost €300,000 to develop. It is anticipated that MABSIS will be implemented by July 2005.
