Eamon Gilmore (Dún Laoghaire, Labour)

I am not asking the Taoiseach to ask the banks and building societies to change their codes of practice. On behalf of the Government, he should take action. A scheme to give families a guarantee that they will not lose their homes needs to be brought before the House by the Minister of State with responsibility for housing, the Minister for the Environment, Heritage and Local Government or the Minister for Social and Family Affairs. There is no point in telling families that they should take their chances in court. Such people often end up spending more money on legal fees, to defend court actions for repossession being taken against them by building societies like Start Mortgages, than the amount of the arrears on their mortgages. This real problem is beginning to surface in the courts. There is evidence to suggest that many of these cases are backing up. We will see many more of them in 2009.

The Government should not be required next year to take emergency action to deal with this problem, which is staring it in the face. It can take action now to prevent the pain that families would have to endure if attempts were made to repossess their homes in 2009. The Government should change its housing policies, the mortgage subsidy arrangements and the rent allowance regime. It should enter into an arrangement with the banks, to which it has provided a guarantee, to ensure that the mortgages of people who find themselves in trouble can be suspended for two or three years while such people get back on their feet. Such an arrangement would make economic sense for the State, the lending agencies and the families concerned. The Government should take action now. Contrary to what the Taoiseach appears to be suggesting, it is not merely a question of encouraging the lending agencies and pointing those who are in trouble in the direction of the offices of the Money Advice and Budgeting Service. Many such offices are likely to be closed some time next year anyway.

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