Mary Mitchell O'Connor (Dún Laoghaire, Fine Gael)
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To ask the Minister for Social Protection the number of accountants that have been selected to participate in the Free Independent Financial Advice for borrowers; and if she will make a statement on the matter. [39363/12]

Mary Mitchell O'Connor (Dún Laoghaire, Fine Gael)
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To ask the Minister for Social Protection the geographical spread of the Free Independent Financial Advisors for borrowers; and if she will make a statement on the matter. [39364/12]

Joan Burton (Dublin West, Labour)
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I propose to take Questions Nos. 888 and 889 together.

The Interdepartmental Mortgage Arrears Working Group (referred to as the Keane group) recommended that an independent mortgage support and advice service be established to advise mortgage holders in arrears or pre-arrears in assessing their options.

A Working Group chaired by my Department, examined the issues relating to the establishment of such a service. The Working Group recommended a three phased approach to the provision of information and advice to assist people in mortgage distress. The approach differentiates between mortgage information and mortgage advice. The first two phases, the development of a website and the establishment of a Mortgage Arrears Information Helpline, address the provision of information.

The third element of the service is the provision of independent financial advice to mortgage holders at the point where a lender presents a borrower with long term forbearance proposals relating to a mortgage secured on the borrower’s primary residence.

At that point, the lender will advise the borrower to take independent financial advice on the proposed arrangement and that, if the borrower wishes to avail of the option, that the lender will pay €250 (plus VAT where applicable) to an accountant for the provision of specified independent financial advice directly to the borrower.

The specified advice will be provided by a panel of participating accountants, from the main accountancy bodies. The accountancy bodies have already notified their members about the new service with a view to having the panel in place before the end of September. It is expected that there could be in the region of 1,000 accountants participating in the service.

The panel will be available on a county by county basis and the details will be available on the Citizens Information Board website .