Eamon Gilmore (Dún Laoghaire, Labour)

One of the proposals which the Labour Party has been putting forward in order to address the serious economic difficulties which the country and working families are facing is a guarantee for families that they will not lose their homes during the period of this recession. To be fair, it appears that the Government has taken up this proposal in some way and has discussed it with the financial institutions. It is reported today that the Bank of Ireland and Allied Irish Bank are prepared to delay issuing repossession orders on homes for 12 months. That is not good enough because all it does is put off the evil day for 12 months. It is not sufficient time because, as was noted this morning by Michael Culloty from MABS and echoed at lunchtime by John Monaghan from the Society of St. Vincent de Paul, a period of two to three years is required so that people can have some reassurance that their family homes will not be repossessed.

In any event, the idea of delaying the inevitable repossession for 12 months misses the point that people who are losing their jobs or are worried about doing so have the additional worry of losing their homes and they need reassurance. That reassurance needs to be provided by the Government securing an arrangement with the financial institutions.

I ask the Taoiseach two questions. First, what arrangements is the Government discussing with the financial institutions which have already been provided with a blanket State guarantee, and which are to be recapitalised in some instances, in respect of their policies on the repossession of homes? Second, can he give security and a sense of safety to families by reassuring them that their homes will not be repossessed, having regard to the arrangements he is discussing with the financial institutions, the considerable resources the State is now making available to recapitalise banks and underpin the financial institutions of the State and the existing arrangements for rent allowance and mortgage interest subsidy?

The basic point is that families need reassurance. That is distinct from simply being told the letter in the post is going to be delayed for six or 12 months. People need reassurance that they will not lose their homes during the period between their losing their jobs, getting another job and getting back on their feet and the return of the period of economic growth about which the Taoiseach has spoken.

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