Eamon Gilmore (Dún Laoghaire, Labour)

It appears two laws are being applied. We have one set of laws in respect of big borrowings for large developments, which are deemed part of the bad debt problem the State had to guarantee and in respect of which it must now recapitalise the banks. We appear to have a regime which is about to recapitalise big loans and repossess in respect of small loans. Saying there have not been many repossessions is not sufficient because there has been a very substantial number of voluntary surrenders. The hammer is put on people who cannot pay and they are effectively forced into surrendering the dwelling to the financial institution. This does not make sense.

Ultimately, when a family loses its home, the State must step in and provide rent allowance and so on. What is the financial institution to do with such dwelling? It cannot sell it in the current market. It makes sense for a whole pile of reasons that there is a regime in place that ensures homes are not repossessed. A formula must be agreed that allows the Taoiseach or any other Member of the House when speaking to worried families about the prospect of their home being repossessed to reassure them that for the next two or three years or during difficult times their homes will not be repossessed. People will still have to repay the mortgage but we should put in place a formula which helps them to get through such times. This, apart from reassuring people about not losing their homes, would provide the type of security and reassurance that might encourage people to spend again, which would have a knock-on effect on the economy. This is about more than just saying repossession orders will be delayed. This is about providing confidence and security to families who are worried about how they will pay mortgages, many of which are greater than the value of the dwellings on the market.

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