Michael Finneran (Roscommon-South Leitrim, Fianna Fail)

Citing repossession cases before the courts recently, they neglected to mention the fact that repossession is always a last resort for lenders and borrowers or that all members of the Irish Banking Federation subscribe to the code of practice on mortgage arrears, and are required to do so under the terms of the bank guarantee scheme. The proposers of the motion also neglected to mention, as evidence published today by the Financial Regulator shows, that the number of repossessions made on foot of court orders between January 2005 and June of this year, is less than 130 out of a total of almost 1 million mortgage accounts. The updated figure for the interim period is believed to be less than 160. Those are the facts. They cannot be contradicted and they are now a matter of record.

The proposers of the motion further neglected to mention that many repossession orders do not lead to actual repossessions. In fact, many repossession orders serve as a wake-up call for borrowers and prompt them to engage properly with their lenders in order to arrive at an agreed approach that is in the interests of both parties.

The proposers also neglected to share with us the fact that lenders generally accept revised repayment arrangements where a borrower is experiencing difficulties but has a willingness to repay the mortgage. They neglected to distinguish between repossession orders for principal residences and those relating to investment properties. They failed to mention that the Irish Banking Federation's members work closely with the Money Advice and Budgeting Service in the development of appropriate debt management solutions for borrowers in financial difficulty.

Why rely on truth when hyperbole will attract a juicier headline? Instead of trying to create panic and peddle the fallacy that avoidance rather than engagement between lender and borrower is the solution, I want to ensure that mortgage arrears do not result in legal proceedings seeking home repossession. I also wish to ensure that all lenders, mainstream or otherwise, have fair and reasonable procedures in place to deal appropriately with arrears and, where absolutely necessary — and as a last resort — repossession.

I warmly welcome the publication by the Financial Regulator of best practice guidance for lenders dealing with arrears and repossessions. While concerns have been expressed in respect of how non-bank lenders — these account for less than 2% of the mortgage market — deal with arrears and repossessions, the information available to me suggests that such lenders, although not members of the Irish Banking Federation, are generally considered to operate in a manner which is compliant with the code. Nevertheless, I have discussed with the Financial Regulator and the Irish Banking Federation how the position in this regard might be underpinned. The Financial Regulator will be giving consideration to this matter in the context of the review of the statutory code of practice early in the new year.

For those households currently in difficulty with mortgage repayments, there are supports in place. The supplementary welfare allowance scheme provides for a supplement to be paid in respect of mortgage interest to any person in the State whose means are insufficient to meet their needs. While the amount payable varies, it will generally ensure that remaining income, following payment of mortgage interest, does not fall below a minimum level. Advice can also be obtained from the Government's Money Advice and Budgeting Service, to which I referred earlier.

While, as one would expect in a downturn, there has been an increase in the number of households in receipt of this supplement, this does not mean these households are at risk of losing their homes, rather it means that the Government has recognised and responded to their need by enabling them to remain in their homes. We will continue to do this and, more important, we will continue to proactively respond to the root causes of increasing reliance on short-term income supplement by acting decisively in the long-term interests of current and future generations of Irish citizens. The most enduring way we can do this is through the creation of employment and seeking to maintain to the greatest possible extent the economic progress we have achieved in the past decade. This is where Government attention is firmly focused.

I have outlined to the House the details of the Government's significant record of achievement, in particular in meeting the needs of those faced with lower incomes and those who need support to purchase a home. My colleague, the Minister, Deputy Gormley, will contribute to this debate tomorrow night and will focus on our programme for further innovation.

The motion before the House is a sad reflection on the proposing parties' inability to offer any concrete policy proposals. They do not have anything to offer in terms of housing responses for older people, people with disabilities or the Travelling community. This is not exactly in keeping with the inclusive vision for Ireland shared by Arthur Griffith and James Connolly. The only positive is that, based on this motion, it will probably be some time before the electorate gives them the opportunity to actually do anything concrete.

In contrast, this Government has a coherent housing policy. We are not simply addressing the specific needs of one group or sector. Housing is for all people and this Government is delivering. That is the bottom line, and we have the commitment and the vision to continue to do so. I commend, without hesitation, the amendment to the House.

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