Kevin Humphreys (Dublin South East, Labour) | Oireachtas source

It is worth returning to what Deputy Maureen O'Sullivan and previous speakers mentioned about the housing crisis. Dublin is very much out of kilter. The housing crisis in Dublin constitutes a serious problem. There is some employment growth, but the cost of renting a two-bedroom apartment in many areas of Dublin is beginning to hit €1,800 per month. This is because little or nothing has been built since 2008. I am thankful there is employment growth, but the demand is increasing very quickly.

Nobody in this House is under any illusion about the scale of the challenge that ordinary families are facing in trying to stay in their homes and pay their mortgages. Deputy Arthur Spring articulated a very strong position on behalf of his generation. I am a few years older than him. During the 1980s I went through a period of unemployment. I had young children and was in negative equity. Interest rates were reaching almost 20%. That was when Mr. Bertie Ahern was Minister for Finance. It was a truly terrifying experience, which is why I can understand very well what Deputy Dan Neville was talking about in regard to the pressure on young people with families and in insecure employment. As with Deputy Arthur Spring, I welcome the debate, but, in all honesty, I must question the credibility of the proposers of the motion. We must remember why nearly 150,000 families with home mortgage accounts are in arrears. Some 97,000 are in arrears for over 90 days. This is because 250,000 people lost their jobs under the watch of the last Government, of which the current leader of Fianna Fáil was a senior member. What occurred was the result of the failures of that Fianna Fáil Government.

Since the Government came to power, we have been at work trying to right the ship of State. We have managed to get the finances of the State under some control.

We have managed to go back to the markets and raise money to fund public services. We are only months away from the troika leaving and Ireland regaining our economic sovereignty which was lost by Fianna Fáil when it negotiated a very poor deal. We have put in place the conditions for job creation and I have spoken to some of the 33,800 people who have been fortunate enough to get back into employment. This Government has created the conditions for growth in employment. The policies we have designed have delivered growth and are showing results. Initiatives such as JobBridge are successful and the reduction in VAT for the tourism sector has resulted in the creation of up to 15,000 additional jobs in the hospitality and food areas.

The establishment of the Insolvency Service of Ireland is a very important development. We are moving forward, slowly but surely. I do not agree with Deputy Boyd Barrett's point about the finance committee in the context of holding the banks to account. If one wants to attend meetings of the finance committee and showboat, that is fine but it will not bring anybody to account. If one is prepared to do work such as that done by Deputy Arthur Spring and others on the committee, in asking probing and difficult questions, one can assist in bringing about change within the banks. We will bring the banks under control and in that context, I welcome the recent announcement that a banking inquiry will commence shortly. It is a slow process but change is underway in Ireland. The Labour Party, along with its partner in Government, is committed to fixing the economy, getting people back to work and ensuring the reforms which did not happen over many decades under Fianna Fáil actually happen.

We must have at the heart of our policies the principle that families should be able to stay in their homes. Unsustainable debt must be recognised and solutions must be put in place. The range of options available under the personal insolvency scheme will allow people, over time, to address their problems. That is why we have piloted the mortgage to rent and split mortgage schemes, while extending mortgage interest relief. These schemes must continue to be implemented and the banks must meet their targets on sustainable solutions. I welcome the recent announcement from the Central Bank that the banks must offer sustainable solutions to 70% of those in arrears for more than 90 days by the end of March 2014. I will certainly be working with my colleagues and Deputy McGrath on the finance committee to ensure that we hold the banks to account.

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