The Citizens Information Board, which comes under the aegis of this Department, is responsible for the Money Advice and Budgeting Service, which assists people who are over-indebted and need help and advice in coping with debt problems. The role of money advisers is to help clients to assess their financial situation, make a budget plan and deal with creditors.
There are 51 MABS companies providing money advice to clients operating from 65 locations around the country, as well as National Traveller MABS, which operates on a national basis. In addition, MABS National Development Limited is funded by the Citizens Information Board to provide a national support and development service to local MABS companies. The MABS national telephone helpline is available from 9 a.m. to 8 p.m., Monday to Friday, and the MABS website can be accessed 24 hours a day at www.mabs.ie. Some 90% of clients presenting to MABS are assisted through the telephone helpline which provides assisted self-help to ensure clients take steps to assess and address their situations. Last year, an additional 19 money advisers were recruited by MABS, bringing the number of MABS staff to 277. The additional advisers have been appointed to MABS companies throughout the country.
The money adviser works out a budget and negotiates on behalf of the client with all creditors, including financial institutions and sub-prime lenders, to secure better terms for the client in managing the repayment of their debts. Where required by the client, the money adviser can assist with setting up a special account with a local credit union into which the client lodges an agreed amount of money regularly and from which each month the money adviser makes the repayments to the creditors on behalf of the client. It is important that people coping with debt difficulties take early action and approach MABS for help and guidance, which can be the first positive step for people in addressing debt difficulties.
The Department was represented on the expert group on mortgage arrears and personal debt, established by the Department of Finance and chaired by Mr. Hugh Cooney, which published its final report on 17 November 2010, with recommendations on measures to assist in dealing with the difficulties created by mortgage arrears.
Additional information not given on the floor of the House.
The report recognises the valuable role of the Money Advice and Budgeting Service in providing information and advice to assist the increasing number of persons with debt problems, as well as its advocacy role in regard to dealing with indebtedness.
Following the assignment of MABS to the Citizens Information Board, the structures and operational practices have been the subject of an ongoing review in the context of enhancing the service and enabling it to respond to the increases in demand. In this regard, the Department and the Citizens Information Board will be considering the expert group report with a view to shaping the future role of MABS to address the recommendations contained therein. In line with the package of measures recommended by the expert group, the Department's mortgage interest supplement scheme, which provides an invaluable safety net to mortgage borrowers, will be reformed to ensure its focus is aligned with the other measures being introduced.
I am satisfied that the Money Advice and Budgeting Service and the mortgage interest supplement scheme will continue to assist people in overcoming their indebtedness and managing their finances.