Kieran O'Donnell (Limerick City, Fine Gael) | Oireachtas source

In respect of the mortgage issue, context is everything. I am linking into the mortgage issue. The context is that during the period from 2003 onwards, particularly from 2006 and 2007 onwards, ordinary people were given mortgages by banks that they could not afford. We have now found that many of them were in jobs that were unsustainable and built on a property bubble and the banks were doling out money. Bank of Ireland were giving out 100% mortgages in 2006. If one looks at the rate of arrears, one will see that it is far more acute in that cohort. Mr. Moran referred to when the amount of sustainable mortgage for an individual mortgage holder is less than the value of the home. I would probably look at it from a slightly different perspective. The banks got us into this mess, not the mortgage holders or the ordinary punter. The banks need to find creative ways to make mortgages sustainable. By that, I mean they should be looking at 40-year mortgages and every conceivable possibility. I accept that they will be voluntary situations but there is a moral and financial onus on the banks. I feel strongly on this issue because the banks have repeatedly appeared before the Oireachtas Committee on Finance, Public Expenditure and Reform and I have seen them coming in from as early as 2007. The banks have a responsibility here and must find every possible solution to get to a point where mortgages are sustainable.

Are they going to look at extending the level of mortgages? Will every possibility be examined to keep people in their homes? The comparison has been made to the situation in the United Kingdom, but this is a different country and different issues arise in our banking system. I want the Department to consider that the onus must be put back on the banks to find a formula and a mechanism. There are countries where there are mortgages with 40 and 50 year repayment periods. Why not move to that system? The banks were recapitalised under PCAR to make provisions for mortgages. Can the witnesses give an indication as to whether the Central Bank figures to be published today show an increase or decrease in mortgage arrears? I call on the banks to approach this in a way that makes mortgages sustainable rather than to go solely down the repossession route.