Joanna Tuffy (Dublin Mid West, Labour)

I support the points made by Deputy Flanagan. I agree with the Minister that the proposed amendment has a good deal of merit. However, it is also a recognition by the Government that there will be many more of these types of cases, with growing numbers of people facing repossession of their homes. This is one of the most serious consequences of the rise in unemployment numbers, with an additional 11,000 people signing on in June. It is bad enough to lose one's job, but it is absolutely devastating to lose one's home. In recent years many substantial mortgages were taken out on the basis of two incomes. I spoke to many couples in the course of the local elections campaign where one partner had recently become unemployed and the other may have been on a reduced income. A person came to my clinic recently who was making mortgage repayments of some €800 a month on a property purchased under the affordable housing scheme. This person is now unemployed and although he is managing to cope for now, his long-term prospects are not hopeful.

The Minister has observed that some people in difficulties deal with the situation by going into denial rather than facing up to what seems like a hopeless predicament. It is important that the Government offers such people options. For example, a scheme should be introduced whereby the Government or local authority can step in and take a share of a property that is about to be repossessed by a financial institution. People who have a home loan that they can no longer afford to repay because they or their partner have become unemployed should be able to convert their ownership into some form of shared ownership. This need not necessarily correspond to the existing shared ownership scheme, but it would be something along these lines. In the United Kingdom, for instance, such a scheme has been introduced to allow people to convert their housing loan. It is important that we introduce something similar and that it is well publicised. People must have options in order that they do not simply give up when faced with pressure from lending institutions.

What are the statistics for those who are simply letting their lender take back their property without the matter being brought to court? Many of the home owners facing difficulties have been making their mortgage repayments for years. It is because of the financial downturn that they are now in a situation where their homes may potentially be repossessed. As they worked hard during the years to meet their repayments, they were encouraged and facilitated by Government policy. For all that effort to be wiped out and their homes taken from them is unacceptable. As I said, people must be given some hope. The Minister's proposal is worthwhile, but it must go further. The Government must afford people options in order that they can be sure, in so far as possible, that their homes will not be repossessed and that they will be allowed to get through their current difficulties and work towards obtaining new employment in the future. I would appreciate the Minister's views on this.

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