Ciarán Lynch (Cork South Central, Labour)

I move:

That Dáil Éireann:

— notes the rapid rise in unemployment in the past 12 months and the resulting difficulties that many families are having in meeting mortgage payments;

— notes that the number of families in mortgage arrears could be as high 35,000;

— notes the irresponsible lending practices engaged in by many financial institutions that have contributed to the growing problem of mortgage arrears;

— notes the unprecedented assistance that has been provided to the banks through the blanket guarantee, recapitalisation and the NAMA proposals;

— notes with concern that the number of repossession orders issued in the High Court increased by 120% in 2008, and the prospect of a significant increase in home repossessions once the NAMA legislation has been passed and legal proceedings in these cases are transferred to the Circuit Court after 1 December 2009; and

— believes that, in the majority of cases, the public interest is best served by ensuring that families can remain in their homes for as long as possible, so long as reasonable efforts are made to meet the borrowers obligations;

calls on the Government to:

— bring forward a moratorium scheme that would provide for a minimum period of 24 months from the time that mortgages first go into arrears, before repossession proceedings can be taken, where a borrower makes reasonable efforts to meet their obligations to pay the mortgage on a principal private residence;

— apply the scheme to all banks covered by the guarantee or participating in NAMA;

— establish the scheme on a statutory basis;

— provide for mediation services under the scheme to assist borrowers in coming to satisfactory arrangements with lenders, such as extending the period of a mortgage, putting a mortgage on an interest-only basis, or rolling up interest for a period, and to act on behalf of borrowers in negotiating with financial institutions and public authorities in working out viable repayment arrangements; and

— establish as a principle of public policy that, where possible and subject to reasonable limits, a family making a reasonable and honest effort to meet their obligations should be assisted to remain in the family home.

I wish to share time with Deputies Liz McManus, Willie Penrose, Jan O'Sullivan and Aengus Ó Snodaigh.

See this speech in context