Róisín Shortall (Dublin North West, Labour)

I agree with the Minister that there is a need for financial institutions to be flexible, particularly in the case of those who were very much encouraged to stretch themselves to the limit in their borrowing and who, in some cases, were advised to overstate their income. I will address those issues later because I have tabled amendments dealing with people who find themselves in those circumstances.

The Minister will know that at the weekend the Leader of the Labour Party, Deputy Gilmore, proposed a moratorium on home repossessions. People who find themselves in that very difficult situation, having lost their jobs and in danger of losing their homes, must be given some breathing space. That must be given to them by the financial institutions involved but also by the Government, particularly in respect of the supplementary welfare system and how it operates.

It is not in anybody's interest that a person should lose his or her home. That is why there is need for flexibility on the Minister's part as well as on the part of the banks and building societies. One would hope that many of these people are in a temporary difficulty regarding loss of employment and that, in time, they will find their way back into the workforce and be able to get their affairs in order. They must be assisted over that hump when their income suddenly stops and they struggle to make repayments. Flexibility is critical in this regard. One must also bear in mind what will happen those people if such flexibility is not shown, by the financial institutions or by the State. In those circumstances, the likelihood is that the person will lose his or her home and will come to the State looking for assistance in the form of social housing.

There is a very lengthy and expensive process for the financial institutions involved in repossession and, ultimately, the banks and building societies end up with properties they do not want. The previous property owners come back to the State looking for assistance. It makes sense to offer that kind of breathing space for people, whereby the State, as well as the financial institutions, provide the flexibility required.

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