Liam Twomey (Wexford, Fine Gael)
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Just before I call on non-members of the committee, I would like to ask the Governor a few questions. This committee has had a number of discussions on the matter, and we are hoping at the end of all this that we might put together a short report on it. As Professor Honohan said, addressing mortgage arrears was never going to be a short-term issue, but on the other hand we did not expect it to become a long-term issue. There is a sense, however, that it is dragging on. People are now talking about austerity fatigue because they feel this crisis is dragging on. Mortgage arrears have had a significant effect on the psychology of people one meets daily. It even concerns people who are not as affected as the thousands who still have to work out their own arrears situations.

Would Professor Honohan recommend any changes? How does he define his own role in this? Is it simply to implement policy or does he see himself as having a leadership role, making strong recommendations to us and getting them moved on?

There is a real need.

It is funny. When we had the banks in here, they took up a very strong commercial position, which Professor Honohan would expect them to have. They are there to respect their shareholders rather than Government policy. Many of the organisations who came here the week before the banks did were focused on the question of what we were really doing to help people out. They seemed to present, although there were variations on the theme, a sense that things were not moving fast enough for people in arrears, that banks were prevaricating, holding back and seeing if they could squeeze a last drop out of those in serious financial trouble. Deputy O'Donnell raised the issue of banks going after those individuals who have positive equity. Can Professor Honohan tell the banks to tidy up those issues where there is negative equity and arrears before going after positive equity? It appears that what we used to call the "low hanging fruit" is being exploited very quickly by the banks to see what they can grab and pull at. Perhaps, in ten years time the people who really are in serious financial trouble and are now having psychological and emotional trouble as matters drags on will be discarded. I do not like the approach being taken by the banks and I wonder if it is our fault as regulators or if there is more the Central Bank could do with the legislation it already has.