Brian Cowen (Laois-Offaly, Fianna Fail)

Part of the purpose of the discussions on this matter is to provide reassurance to people who work honestly and reasonably, taking account of changed circumstances, with the bank or lender to reschedule mortgage arrangements that there will be no precipitative effort by financial institutions, including those outside the voluntary code who must now, in my opinion, sign-up to the statutory code, to repossess their homes. We are requiring that all lending institutions act in a humane and sensible manner on the basis that we wish to provide that reassurance to mortgage holders. In practice, assurance is given in the normal course of events that every effort will be made to avoid repossessions. This is evidenced by the low level of repossessions to date, the latest figure for which is 0.3% of the more than 1 million mortgages in the country.

It is important that the code be put on a statutory footing. This will provide protection and reassurance. Also, the code must be comprehensive. Obviously, the financial institutions must find the most humane way possible of dealing with the situation while distinguishing between those who can pay and those who will not pay. Those who cannot pay because of changed circumstances will be dealt with in a way that is reasonable and correct in the circumstances. That is the basis upon which the discussions are ongoing.

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