Committee to address debt and mortgage arrears
The approval for the special committee was discussed by the cabinet at a meeting on Tuesday and will be signed off on soon, the department said yesterday.
It will comprise Finance Minister Brian Lenihan, Justice Minister Dermot Ahern, Enterprise Minister Mary Coughlan and Social Affairs Minister Mary Hanafin.
Mr Ahern explained: “It was agreed the relevant ministers, justice, finance, enterprise trade and employment and social, that we would meet in order to progress some of these issues. That’s already started.”
Mr Ahern said he expected it would help focus Government plans on helping recession-hit individuals, including those coping with mortgage arrears.
The committee will examine details from the Money Advice and Budget Service (MABS) about cases of people struggling with personal debt.
A conference heard of proposals by the Law Reform Commission yesterday to address personal debt, including the regulation of debt collection agencies, a non-court-based settlement scheme for borrowers, and the need for a debt enforcement office.
Attending the event at Dublin castle, Mr Ahern said new laws were planned which would see those facing fines doing community service rather than going to jail.
Measures to address personal debt problems were agreed in the new programme for government last month.
A Fines Bill, before the Dáil, is expected to include the proposals which would see a threshold for fines below which payers would not face prison.
Mr Ahern said it could be “a couple of hundred euro” but the figure would depend on the Law Reform Commission’s final report.
