Dáil Éireann Debate, Thursday - 21 June 2018
106. Deputy Michael McGrath asked the Minister for Justice and Equality his plans to act on the recommendations made by the Insolvency Service of Ireland as part of its section 141 consultation submission made in June 2017; and if he will make a statement on the matter. [27200/18]
Amharc ar fhreagraMy Department is currently finalising the section 141 review of Part 3 of the Personal Insolvency Acts. Part 3 is the core of the personal insolvency legislation, dealing with the operation in practice of the three personal insolvency mechanisms – Debt Relief Notices, Debt Settlement Arrangements, and Personal Insolvency Arrangements. This review also responds to the commitment in the Programme for a Partnership Government to review personal insolvency thresholds and processes, including for small to medium enterprises.
In practice, the insolvency legislation has already been extensively reviewed and developed since 2012. Key reforms already introduced include the section 115A court review process (which removed the so-called ‘bank veto’) and the Abhaile Mortgage Arrears Resolution Service (which in effect ensures that borrowers at risk of losing their homes due to mortgage arrears can access free independent expert financial and legal advice to get solutions into place).
Nevertheless, we have always said that we will keep this important legislation under review, and will take any further action needed to ensure that it operates effectively.
My officials have completed extensive work on the review, which included a public consultation launched last year. A range of detailed submissions was received and these have been carefully analysed. Furthermore, a number of additional issues and concerns emerged in recent months, following the closing date for the receipt of submissions. In light of these emerging issues, the timeframe for the review was extended to allow these to be taken into account.
The Insolvency Service of Ireland was among the organisations that made a submission to the public consultation. Given the ISI’s statutory role in monitoring the personal insolvency system and advising me on matters related to their functions, their suggestions are particularly important for the purposes of the review. Their submission highlighted a variety of areas where the ISI believes that legislative amendments may be beneficial. These suggestions are being considered as part of the review. Subsequent discussions with the ISI have also highlighted additional possible changes to the Personal Insolvency Act.
The Consultative Forum, which was established by the ISI and consists of a variety of stakeholders involved in the personal insolvency context including both debtor and creditor representatives, also made a submission to the review. This submission reveals a strong level of consensus amongst both debtors and creditors in relation to streamlining the personal insolvency process. In addition, the submissions received have suggested measures to extend access to personal insolvency options to a wider cohort of borrower and to encourage more constructive engagement with the legislation by both creditors and debtors so that the agreement of sustainable statutory personal insolvency options can be accelerated. All of these recommendations are under consideration.
I expect to receive a report from my officials on the review in the coming weeks. In consultation with the Minister for Finance, I expect shortly afterwards to bring proposals to Government to address the review’s recommendations, including proposals for legislative change.
