Mary Hanafin (Dún Laoghaire, Fianna Fail)

Having seen today the number of people who have joined the live register, we realise this is an extremely difficult time. As Deputies stated, it is not just a question of losing one's job because many are in danger of losing their homes also. The State is in a position to support many of them with rent supplement and mortgage interest supplement.

The increase in the unemployment rate over recent months indicates the difficulty people are experiencing. At the end of October, during which month I have no doubt there was a significant increase, 7,000 people were in receipt of the mortgage interest supplement. As we know, there were considerable numbers availing of the rent supplement. The allocation for this year could in no way meet the demand that arose. Our provisional estimate for the mortgage interest supplement was €14.4 million but we now anticipate we will spend €26 million thereon this year. A provision of €31 million has been made for next year. As more people qualify over the coming years — it is a demand-led scheme — we will have to keep the allocation under review.

It is true to say the same financial institutions that offered 100% mortgages without demanding a deposit and which in most cases carried out very few checks as to ability to pay are the very institutions that are threatening to foreclose. The Money Advice and Budgeting Service has advised me that one of the major problems associated with those who seek its advice is that they have not approached any of the financial institutions to determine whether they could restructure their repayments. People are overtaken by fear and a sense of insecurity. The Money Advice and Budgeting Service told me the hall table was the most popular place in the house in that people leave their post there without even opening it.

We want to encourage people who are facing difficulties and losing their jobs to go to their financial institution to discuss the restructuring of repayments. If somebody has a good record of making repayments, there is no a reason financial institution should repossess his or her home or penalise him or her, despite the fact that he or she may have lost their job. We all hope circumstances will improve. There is nothing worse than losing one's home after losing one's job.

What Deputy Noonan said about developments in the United Kingdom is very interesting. I will consider any suggestions that might support mortgage holders. Our mortgage interest supplement does just that — it supports the interest payment. Mortgage holders who are experiencing difficulty should approach their financial institutions and the latter should be as willing to engage with them as they were to hand out the money in the first instance. From our own budgeting perspective, we will be considering the needs for next year. I refer to the mortgage interest supplement, not to mention rental supplement.

With regard to the amendment, I appreciate the position of Deputy Shortall. The difficulty concerns the way in which the system is currently devised in that social welfare money is being paid out by community welfare officers who are employed by the Health Service Executive. This is why the system is as it is. The Deputy will also be aware it is proposed that the community welfare officers will come under the remit of the Department of Social and Family Affairs. As part of this measure, the Social Welfare and Pensions Act 2008 provides that the appeals process for basic supplementary welfare allowance payments, including the mortgage interest supplement, will be integrated with the appeals procedure for other social welfare payments. Thus, the system will become much more streamlined.

The legislative provision is not yet in force but, as soon as the transfer of functions regarding the supplementary welfare allowance from the Health Service Executive to the Department is complete, we will activate it. It should serve to meet the concerns being raised about the process and procedures, as they currently exist. It is for this reason that I do not intend to accept the amendment.

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