Ahern unveils Bill to cut bankruptcy period to six years

LEGISLATION TO reduce the period of bankruptcy in Ireland from 12 to six years has been introduced in the Dáil by Minister for Justice Dermot Ahern.

The omnibus Bill also provides that supermarkets and convenience stores which do not provide structures to separate alcohol from other products, face the threat of non-renewal of their off-licences.

A voluntary code of practice is already in place for licence holders and the Minister said that while “non-compliance” would not be an offence, it would “constitute a ground upon which an objection to renewal of the licence concerned can be made.

Mr Ahern was speaking as he introduced the Civil Law (Miscellaneous Provisions) Bill, which amends a range of Acts including civil legal aid, private security services and family law maintenance payments. The Bill also sets out the protections for “Good Samaritans” against civil liability if they assist an injured person.

Volunteers “will be required to act in a way that does not contribute to gross negligence” while the volunteer organisations they represent “will be held to the higher standard of ordinary negligence”.

The bankruptcy provisions provide for the “automatic discharge of bankruptcies on the 20th anniversary” of bankruptcy being declared. The Minister said this would deal with “legacy bankruptcies” that “clog up the bankruptcy system”.

The Minister noted statements that the reduction from 12 to six years might have a limited effect because of the requirement to pay expenses, fees and payments to the Revenue Commissioners. However “the change I am making will assist those who may be in a position to meet their liabilities and therefore re-engage in economic activity in society”.

Fine Gael justice spokesman Alan Shatter said “bankruptcy is a dirty word in Irish society, which is understandable at a time some prominent figures, who have done society serious harm, are using bankruptcy to evade their responsibilities or limit their liabilities. The vagaries of business in present economic circumstances have often forced people into bankruptcy and there is little they can do to avoid it. To wait 12 years in Ireland to be discharged from bankruptcy as compared to 12 months in the neighbouring jurisdiction seems difficult to justify.”

Labour justice spokesman Pat Rabbitte questioned what he called the “new fashion” in the Department of Justice “for omnibus Bills that include the kitchen sink”. He said it was “difficult to see any rationale for throwing together legislative amendments on bankruptcy, domestic violence and private security services”.