Charlie O'Connor (Dublin South West, Fianna Fail)

——they will see that of all the issues I try to deal with, and I do my best, housing is one of the biggest. As someone who was a member of the local authority from 1991, was chairman of the council in 1999 and is a proud Dáil Deputy for the area since 2002, I will not be afraid to bravely say from the Government benches that we must continue to do that. I am pleased the Labour Party leader has come into the House especially to hear my contribution. Deputy Gilmore is very welcome.

As my party colleague, the Minister of State, Deputy Finneran, pointed out yesterday, the doomsday scenario being painted for mortgage holders is inaccurate and irresponsible when all logic suggests that early contact between a distressed lender — we all know them — and a borrower is the best way to avoid the trauma of repossession. There are those who continue to raise the spectre of mass repossession, encouraging people to keep their heads in the sand and avoid the very engagement that could ease their troubles. I sincerely hope that mortgage holders facing difficulties with their repayments pay less heed to that loose talk and take heart from the findings of the Financial Regulator on arrears and repossessions.

I wish to put on record some of the facts on home repossessions. Following a new examination of procedures for handling arrears and repossessions of properties, the Financial Regulator has confirmed that repossession is a very last resort for lenders, which should be welcomed across the House. The study did find that in line with the requirements of the Irish Banking Federation code of practice on mortgage arrears, which is mandatory for the covered institutions benefiting from the State guarantees, lenders accept revised payment arrangements when a person is in financial difficulty and is willing to repay a mortgage. The consumer director in the Office of the Financial Regulator has urged people to contact their mortgage providers as soon as they become aware they will experience difficulty in meeting their mortgage repayments, as if they do so it is unlikely the question of repossession will arise.

The Financial Regulator has carried out research which bears out the effectiveness of arrangements adopted by mainstream lenders for dealing with mortgage arrears. Out of a total of almost 1 million mortgage accounts, a total of 128 residential properties were repossessed in the three years to June last and of these 19 were investment properties. Comparing 2007 to 2008 to date, there is no indication that the trend has accelerated significantly.

Statistics from the Financial Regulator illustrate an increase in the number of people falling into arrears, which reflects the deterioration in economic and financial conditions. Once again, however, the picture emerging from the regulator's research — that is, the one based on actual evidence — is that this is not the epidemic of loan difficulties some would have us believe exists. According to the research, the number of mortgage accounts in arrears represents less than 1.5% of total residential mortgages. Nevertheless, for the households experiencing those difficulties, this is evidently a traumatic time. It is essential that we maintain our strong performance in this area and ensure best practice procedures are in place for dealing with mortgage arrears governing the activities of all lenders.

As a Dublin-based Deputy, I welcome the fact the Minister of State responsible for housing has acted so promptly, meeting both the Financial Regulator and the Irish Banking Federation earlier this week to examine how the code of practice could be extended to the whole of the mortgage lending sector. Progress on this is expected, I am told, in the new year. This is a further demonstration which I am sure will be accepted across the House of the Government's close attention to and proactive engagement with this important issue. Safeguarding the interests of households that experience difficulties in meeting their mortgage repayments owing to circumstances beyond their control can make a significant contribution to supporting confidence in the economy and its future prospects.

I also wish to refer to the issue of homelessness. Deputy Ciarán Lynch spoke well and sincerely about the issue yesterday. I will not stand here and deny there is a problem. Those who know me know I am a proud Dubliner from these parts, although they might not know it from my accent. Like everybody else, it upsets me to walk the streets, not only in my home town but in the centre of the city also — I hope the city-based Deputies do not mind. We have gone through a time of economic growth and we are now in very difficult times but I always made the point, standing by my social inclusion principles, that at a time when all boats are rising, we must remember the little boats, and shame on anybody who does not do so. At a time of difficulty, we must help the little boats.

There is a range of issues and all Members are having many issues brought to their attention each day. It is sad that one can walk these streets and find people who are homeless. I will take Members out to Tallaght, where I live——

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