Arthur Spring (Kerry North-West Limerick, Labour) | Oireachtas source

I agree with the sentiments expressed by most of my colleagues who have spoken up to now. However, I would not agree that the Government is in total denial or that it is delusional. For the past five years, I have been adamant that the mortgage crisis, particularly as it affects my generation, is one of the biggest problems facing society. I think the Personal Insolvency Act 2012 has the potential to take more people in this country out of trouble than any other legislation. It is not yet doing that, however. There are a couple of problems with it. Prior to today's meeting, I heard some of the witnesses' opinions on how the legislation might be improved.

I am of the belief that the fundamental problem in this regard revolves around money. Some of the banks that we recapitalised for the purposes of dealing with mortgage distress have said they intend to pay that money back to the Government with some interest. I did not ask the Government to give the banks money for the purposes of getting it back. I wanted people to get a break on their loans and their mortgages. I want us, as a community, to spread the distress among all members of society. That is not happening. The quintessential representation of how to deal with distressed mortgages in an equitable manner involves a mortgage to rent situation whereby there is an equity stake to be dealt with. We must not forget that such a solution creates a fundamental problem for the banks. Their fundamental legal obligation - their fiduciary duty - is not to their borrowers but to their shareholders. That is why we ultimately need legislation to protect them. What can we do to increase consumer knowledge of the Personal Insolvency Act 2012? What can we do to make the process cheaper? How can we improve these matters so that the banks are no longer looking after their shareholders only?