Brian Cowen (Laois-Offaly, Fianna Fail)

No. What we are trying to do is, first, to ensure that assets that can perform do perform and, second, to provide reassurance to people who get into difficulties in respect of their principal private residence. What I am saying in respect of the latter is that reassurance will be provided. People who make contact, as they have been doing up to now — one must take into consideration the rate of possessions taking place despite current difficulties — will be able to put in place rescheduling or interest only arrangements and may agree to have arrears recapitalised onto the main mortgage amount. As stated, it is in the interests of the mortgage holder and the lender to find an arrangement which meets the current circumstances of the parties concerned.

As Deputy Gilmore stated, institutions are aware the housing market is not good. Their ability to take on assets for the purpose of disposal is not a good mark. It is better for them to work with the people and to assist them through the next number of months or years when they are in difficulty. That is in practice what the lending institutions, in their own interests quite apart from the wider public interest, have to and will do. It is a question of providing reassurance in terms of the statutory code and what practice arrangements will be in place. To make the argument that in some way that is not something we should be concerned with or that we are not trying to address is not correct. We are seeking to address that issue in a way that provides confidence that the performing loans are performing and those which are not, in particular in respect of private residences, will be dealt with in a humane and sensible fashion.

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