asked the Minister for Justice the rate of interest on outstanding debts enforced by the courts: (a) up to the date of the court decision, (b) after the court decision, (c) the comparative rates in the United Kingdom; and if the situation whereby these rates are significantly lower than the current market rate for commercial loans is an encouragement to the non-payment of just debts.
Ceisteanna—Questions. Oral Answers. - Interest Rates on Debts.
4.
The present rate of interest on a judgment debt of the Supreme Court, High Court or Circuit Court is 4 per cent; interest is not allowed on District Court decrees. The interest dates only from the date of the judgment's pronouncement.
As a matter of principle, I would regard it as inappropriate for me, in the context of a reply to a parliamentary question, to undertake to supply information about the law in operation in any other country, as I have no official responsibility in the matter.
Whether the rate of interest allowable is an encouragement to the non-payment of debts is a matter of opinion but, in any event, as I indicated in reply to a Dáil Question on 20 April 1978 I hope to introduce legislation in due course dealing with the matter.
Would the Minister not agree that it must be an incentive to the non-payment of debt, with inflation running at a figure in excess of 4 per cent, when one is not entitled to charge interest up to the date of the judgment and only 4 per cent after that? Is the Minister aware that the fact that such a low rate of interest is available here is a discouragement to foreign people to trade with people here because in the event of a debt not being paid and enforcement proceedings having to be taken a low rate of interest is available? Would he agree that it is discouraging commerce with us at present?
This matter is the subject of an examination by the committee who are considering court practice and procedures. That committee presented a report which is being studied with a view to using it as a base for legislation. There will be changes but I cannot say what those changes will be. I should like to tell the Deputy that there is a need for change and whatever changes are necessary will be introduced.
Would the Minister agree that because of the commercial importance of this the matter should be treated as urgent?
The Deputy is correct and I am treating the matter as urgent.