James Bannon (Longford-Westmeath, Fine Gael)

I welcome the Bill. It is important to bring the issue to light and I know all Deputies are very aware of people who are affected. In the budget the Government increased mortgage interest relief to 30% for first-time buyers who bought between 2004 and 2008, which is a very welcome decision. Mortgage relief helps more than 250,000 homeowners who are in negative equity and saves homeowners in distress up to €166 per month. If we had not taken this action, rising interest rates would push more homeowners into severe arrears.

The cost to the Exchequer is between €130 million and €140 million per year but I believe it was necessary. I compliment the Government on its compassion in this area during these difficult times because it is not easy to find money for schemes. We are trying to do our best with a limited purse. The sooner the people get back control of the purse, the better. The IMF, EU and European authorities are dictating to us how we spend our money and this is regrettable. This was brought about by the reckless spending of the previous Government.

We must help hard-hit home-owners in every way we can and the Government is doing its best. We are aware of the number of households becoming homeless as a result of repossessions, which are running at a high level throughout the country. The threat of homelessness is real and rapidly increasing, with a 70% rise in people seeking help to pay their mortgages. The Society of St. Vincent de Paul and other organisations, including the Government and the Department of Social Protection, are doing their best. We cannot abandon these people.

The current economic climate and persistent increases in mortgage repossessions make it clear that this area needs to be addressed urgently. Financial de-regulation and an increase in sub-prime lending has drawn in more economically vulnerable households by giving loans to people who cannot afford to pay.

Education must be provided to ensure that people have the necessary financial capabilities to manage their affairs and in order that the information offered to them is understandable. I know the Government is considering the matter. Support services are necessary for people who intend to acquire a mortgage. Mortgage rescue schemes are already in operation in many parts of Europe. These can take the form of shared ownership. Deputy Durkan referred to these schemes earlier. These schemes can reduce the level of mortgage repayments or facilitate the complete purchase of a property when the former owner becomes the insured tenant. I believe this should be considered in consultation with the banks and building societies and I have no doubt the Government is examining this possibility.

Rural areas are not immune from the threat of homelessness due to repossessions but the problem is often hidden due to the stigma facing small communities in respect of those who lose their homes. The Bill is important and it is important that we debate the issue. I know the Government will bring forward every possible support in this regard.

Deputy Donnelly's Bill is well-intentioned and his motives laudable. However, the Bill is probably poorly drafted because he does not have a back-up team in place such as that which is available to the Government parties. The Bill is somewhat confused in its approach. If it were implemented we would risk serious legal and constitutional difficulties, not to mention the time considerations and costly procedures at the courts for the parties concerned.

It is important to debate the issue. I do not suggest it is the case but we cannot sweep problems of this nature under the carpet. I have no doubt the Government is doing its utmost to help people. We are all human beings and we all have clinics throughout the country. We all know from first-hand experience of the serious problems confronting people in serious distress because of their mortgages. As I stated at the outset, if funding were available something could be done. We are all human and we do our utmost to help these people. I know of people who went to court and who were nervous beforehand but a humane approach was taken by the court. These people came back to me and told me of their excessive concern in advance of the hearing but, in the event, compassion was shown to them. Judges are human like everyone else and they consider the human aspect of these situations. I thank the Ceann Comhairle for giving me time to speak on the matter.

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