Ruth Coppinger (Dublin West, Anti-Austerity Alliance)
Link to this: Individually | In context | Oireachtas source

I am sorry I missed Mr. O'Connor's introduction. I have one question about the take-up of the person insolvency arrangements. Mr. O'Connor was referring to them as I joined the meeting. Given the level of indebtedness in respect of mortgages, we have to acknowledge that there has been a low take-up of the scheme. The point is important because this is one of the major Government-initiated schemes to deal with mortgage debt. If people are unable to participate or are not attracted to it, then we will continue to have a problem. At the end of 2015, a little under 62,000 owner-occupier mortgages were in mortgage arrears as well as 23,000 buy-to-let arrangements.

Of 85,000 mortgages in arrears and 105,000 restructured, only 1,000 or 0.5% have involved a PIA. Why is there such a low take-up? The Government abolished some of the costs but people have other costs, such as an initial consultation fee and other fees. Even given that the Government abolished some costs, there has not been a huge take-up, as shown on the ISI graph. Is it so low because the terms of the PIAs are too punitive? For example, a single person with no car is allowed €218 a week to live on. Everything else must go into repaying debts for six or seven years while the PIA is in force. Some people might take the attitude that they will stay in arrears in the hope of getting a better job with an increase in income and sort out their debts later rather than live under a punitive regime, relatively speaking. It is not easy to live on approximately €200 a week, particularly in Dublin or any city. They may also hope that house prices will rise again and they can sell their houses. Would Mr. O’Connor agree that may be a factor, that people would find it difficult?

Does the ISI find any difference between State-owned and privately owned banks in their dealings with vulture funds, which now control 47,000 mortgages? How many dealings has ISI had with them? Does Mr. O’Connor agree with the Government’s allowing them into the system?

We need a write-down on mortgage debt to release people from the albatross. That would have a huge impact on society because young families would have money to spend on their children and so on. Does the ISI have any estimate of how much owner-occupier mortgage debt has been written off by the banks and how does that compare with the amount of developers’ debts the banks have written off?