'Diamond bazooka' rings not exempt

CELTIC TIGER era bling will not be exempt from proposed personal insolvency legislation after Minister for Justice Alan Shatter took aim at “€300,000 diamond bazooka” engagement rings during an Oireachtas debate.

Mr Shatter told the Justice Committee that some “high rollers” had boasted in gossip columns during the boom years of the latest “great sparkler” or other expensive item of jewellery they had bought for a partner.

“Some of these people have left this country because of the debts that they’ve left behind them...Quite a number of them have property in Nama, and quite a lot of them have cost this country an awful lot of money. They’re looking for a debt relief notice but they want to hold on to the ring worth €300,000 or €400,000. Now let’s get real about what we’re talking about here.”

Under the planned law to let debtors to emerge from bankruptcy after three years instead of 12, certain items will not be taken into account when assets are calculated. A Fianna Fáil proposal that “one item of jewellery of ceremonial significance” be exempt was rejected by Mr Shatter on the grounds that no limit was put on the value of the item.

“One individual’s €100 ring that has ceremonial significance might be another individual’s €200,000 or €300,000 diamond bazooka that they regard as having a great deal more ceremony than the €100 ring.”

He said no one would be deprived of a modest engagement ring or wedding band valued at “a couple of hundred euro”.

Labour TD Anne Ferris said most women “expect a lot more than a €100 ring”. During the Celtic Tiger very expensive rings were purchased. “It would break lots of hearts if they had to hand back their engagement rings.”

Mr Shatter indicated he would consider increasing the value of a car that can be retained by debtors from the planned €1,200. People Before Profit TD Richard Boyd Barrett asked: “Would you get a car that would drive for €1,200 these days?”

Mr Shatter also said he would consider exempting equipment belonging to debtors’ school-going children such as “a small laptop”.

He expressed a hope the insolvency Bill could help people who purchased homes after being led to believe property prices would always increase and borrowing from financial institutions which should have known better.