Pearse Doherty (Donegal South West, Sinn Fein)
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People have been in mortgage distress for a number of years. This has not happened today or last week. People are in serious mortgage distress. The Government has had to introduce far-reaching legislation, which is nevertheless flawed because it provides for a veto by banks. Dr. Somers can say the bank will act under the law and, of course, that is true because the law provides it with a veto. Government, politicians and people generally do not want the bank to use its veto but rather to engage in debt write-down after the process provided for has taken place. The problem for the public interest directors is that to date only €600,000 has been written off for distressed mortgage holders out of a total of €95 billion. What comfort can the witnesses give the joint committee and people watching that there will be a new direction in AIB on writing off debt? If AIB was doing its job properly, there would be no need for the legislation.