Michelle Mulherin (Mayo, Fine Gael) | Oireachtas source

I am also pleased to speak in tonight’s debate. One truth that must be told about debt is that there is no easy way to deal with it. It will never be easy when one is up to one’s tonsils in debt or it is over one’s head. We are tasked with finding mechanisms to deal with debt, bearing in mind all the legalities and complications of the person who owes and the person to whom money is owed and what that means in reality. We must be compassionate. One of the main tenets of the personal insolvency legislation is to say to people that they are worth more than their debt and that there is a way to deal with debt. It does not mean there is a magic wand because that does not exist for the problems we have in this country with which we have been dealing bit by bit and making progress.

It must be acknowledged that progress has been made, including the stabilisation of the dreaded banks. We need banks. The Personal Insolvency Act is also a sign of progress, as is the work the Central Bank has carried out towards obtaining mortgage arrears resolution processes between the banks and lenders. The banks are required to take a long, hard look at a situation where people are being put out of their house and are handing over their keys. In some cases they paid €200,000 for a house that is worth €40,000 and they are still paying the remainder of the debt. That is totally unsustainable. People will be crushed under such pressure. That is a wake-up call for banks. With colleagues I recently met with the CEO of AIB. I am impressed with its plans this year to deal with each and every loan that is in difficulty from the point of view of restructuring it in a sustainable way, for example, by extending loans for 40 years. We must do whatever it takes because we are in desperate times. People want solutions and we must be imaginative and innovative about it.

I can only speak for where I am from and the general region, but the idea that we would build more social housing is absolutely crazy. It should be remembered that people who are on local authority housing lists are currently in accommodation. The accommodation in question is required to be up to a certain standard. In some cases the State is paying landlords most of the rent and in other cases people are paying the rent themselves. If we build more houses and put people into them we will leave empty properties and landlords who have mortgages will not be able to pay them. People were encouraged to build and buy houses and to let them out. Building more houses is definitely not a solution. It would be a ridiculous proposal for the area I come from.

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