Brendan Smith (Cavan-Monaghan, Fianna Fail) | Oireachtas source

Issues and queries raised at the clinics of public representatives are generally a good barometer of the concerns of individuals and families throughout the country. Day in, day out, we encounter the many distressed individuals and, in so many instances, heads of households who are experiencing inexcusable and totally unacceptable delays in the processing and finalisation of social welfare claims. In many instances, such households have no income. Such delays cause much stress for families and need to be addressed by the Minister, Deputy Burton. Unfortunately, no progress has been made by the Minister in improving those times. Within the broader public service, there are sufficient resources to deal with social welfare issues and ensure the appropriate personnel are in place to deal with the processing and finalisation of applications so that they are completed within an appropriate period.

I mentioned these concerns for individuals because they arise predominantly from the dramatic changes to household incomes arising in large part from the lack of employment opportunities and loss of jobs. More recently, we have all met constituents who are in difficulty with mortgage arrears. In many instances, the cases I have come across are entwined with the lack of employment opportunities, and a house that previously had two good incomes might now have none, unfortunately. Such concerns cause great stress to households, whose members fear for the future of their homes. It is a fundamental, strong and very valid viewpoint within Irish society that keeping people in their family homes is an imperative in maintaining a good and progressive social policy, and it also evidently makes good economic and financial sense.

The statistics speak for themselves in regard to the mortgage arrears crisis, which is the greatest social challenge facing the State and our people. From a societal point of view, and also in regard to economic recovery, we need quick and substantial progress in tackling the mortgage crisis. Since early 2011, the numbers in arrears have doubled and more than a quarter of all mortgages are not being paid in accordance with their original terms. It is obvious there are particular difficulties for the 28,000 families whose mortgages are in arrears for more than two years. The importance of this Private Members' motion is also demonstrable in the figures made known at the end of June of this year, which show 142,892 family home mortgage accounts in arrears, with 57,163 of those in arrears for more than a year.

The public at large were shocked to learn through the recent presentations at the Oireachtas finance committee that the banks had issued more than 13,000 legal letters threatening repossession. The discussions at the committee pointed once again to the need to strongly reduce the power of the banks through the establishment of an independent mortgage resolution office or by legislative means, which would mandate the type of resolution the banks would have to offer in certain circumstances. Surely, threats of repossession cannot be regarded as a sustainable solution under the Government's mortgage arrears resolution targets programme, which should have a clear outline and definition of a sustainable solution.

I referred earlier to the need to establish an independent mortgage arrears resolution office whose remit would be to oversee the implementation of sustainable mortgage solutions. I commend our party spokesperson, Deputy Michael McGrath, for putting this motion before the House, and we had a similar type of motion a few months ago, which shows the importance the House in its entirety attaches to this issue. Deputy McGrath has been calling for the past six months for the Central Bank to set out its targets in regard to the conclusion of agreements in respect of customers in mortgage arrears, and, as a party, we welcome the recent Central Bank announcement, belated as it was. I believe many benefits would accrue from measures proposed in the Fianna Fáil party's Mortgage Resolution Bill, which would remove the power of veto that has been handed to the banks through the personal insolvency legislation. The Bill provides a number of options that could be included in the legislation - for example, split mortgages, interest-only payments for up to four years, extending the period of the mortgage, repayment holidays and debt for equity swaps. Many of the voluntary organisations, such as David Hall of the Irish Mortgage Holders' Organisation and his colleagues, have been doing good work in advocating for and representing people who are under stress and distressed as they find themselves in severe financial difficulty.

In conclusion, I again compliment my colleague, Deputy Michael McGrath. I note Deputy Mathews was very unhappy that he did not have another 30 seconds to finish his comments. I know from him that he wanted to put on the record in particular his viewpoint that the banks need more capital, and that the European authorities will have to step up to the plate in making that capital available. Deputy Mathews has been consistent and very strong on that issue.

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