Charles Flanagan (Laois-Offaly, Fine Gael)

I am pleased to speak on this motion. I compliment my constituency colleague, Deputy Enright, on bringing it before the House. It is really about the dire straits in which people find themselves. This is brought home to public representatives on a daily basis at our clinics. People come to us at their wits end. They have lost their jobs and are unable to make their mortgage repayments. The threat of eviction hangs over them like the sword of Damocles. These people are frantic with worry. Many have children and families to support. It is a heartbreaking situation.

To a large extent, these people were duped into the situation in which they now find themselves. Banks and building societies handed out mortgages to anybody who asked. They promised people they could have it all, even a 100% mortgage and €25,000 for a wedding, if they wished. They masqueraded as organisations which cared for their customers. There is not much evidence of the caring side of banks or building societies now. While top officers in the banks continue to receive large bonuses, the sheriff's office is being sent to people's houses. The spectre of eviction looms as it has not done in this country since the penal times. Our folk history and folk memory have given the Irish nation a horror of eviction. Historically, the courts have been loath to evict people since the foundation of the State. However, the aggressive practices of foreign sub-prime lenders in particular have resulted in Irish families being made homeless yet again. In my constituency, Laois County Council has ordered a number of evictions for 10.30 a.m. tomorrow.

Some clinic cases refer to the sinister and dangerous new element which has emerged in the debt collection sector with the entry of former gangland figures like Martin "The Viper" Foley and assorted eastern European Mafiosi with links to Russian Mafia. People and families have been threatened with serious personal violence and even death by these criminals who take a hefty chunk of commission when a debt is paid due to their efforts. Property has been vandalised and people are terrified to report the matter to the Garda such is the sinister reputation of these thugs.

Recently, I tabled a series of parliamentary questions to no less than four Departments seeking clarification as to whether the Government plans to take action on this growing problem. I asked each Department to clarify its responsibilities in this regard. The Departments of the Taoiseach, Enterprise, Trade and Employment, Justice, Equality and Law Reform and Finance all declined to accept responsibility in this area. This scandalous abdication of responsibility characterises the Government's rabbit in the headlights attitude to every problem which arises.

We need a system that involves the vetting of those who collect money to protect those under pressure who are unable to meet their debts at this time due to extraordinary economic circumstances. Ireland is almost unique in the western world in having no system of regulation for debt collection. We have lessons to learn from our neighbours to the east and to the west in this regard.

I do not wish to detract from the importance of personal responsibility with regard to the repayment of moneys borrowed. We must all do our best to honour our debts and be responsible about taking on debt and responsibilities. Reckless lending has brought us untold economic difficulties. The spectre of large scale evictions can only exacerbate matters. Fine Gael and Deputy Enright in particular have suggested a number of practical steps in this regard. I hope the Government is listening with an open mind because this matter needs to be addressed as one of urgency and importance.

See this speech in context