Ciarán Cuffe (Dún Laoghaire, Green Party)

This is an exceptionally difficult time for families in fear of repossession of their homes. When there is uncertainty over income and employment, losing one's home is difficult to countenance. I am relieved to note that so far only 20 home repossessions have taken place among the institutions covered by the bank guarantee. Therefore, based on these statistics, repossession is not as widespread a problem as suggested.

The Government has protections in place. The code of conduct on mortgage arrears has moved from voluntary to statutory and applies to all regulated lenders. It provides a scheme through which borrowers and lenders work together to rectify the situation and sets in place a plan for clearing built up arrears. It talks about the broader point of repossession being the last resort. It is important to get the message out that if anyone is in difficulty, the first thing to do is to sit down with the lender and work through it. There is an onus on the lender to do that, which is crucial as a first port of call.

I note from recent court reports where a couple had fallen into debt that the judge refused to allow a repossession order so there is judicial discretion. The Judiciary is working to avoid repossessions. I note comments from the free legal advice centres, that they are getting a huge number of calls to their information lines. People are seeking information and it is important it is available to them so it is clear what is happening.

Deputy Mary White pointed out that there is good wording in the programme for Government that must be delivered into both regulation and legislation to protect those who are in financial difficulty. There is a menu of choices in the programme for Government, whether it be the bank taking equity, rolling up the outstanding interest, longer maturity dates, reduced rates or lease backs. All of these are being examined and we will choose from the menu to ensure that people are as well protected as possible.

The political system and decisions over the past 15 years contributed to the problem that arose. The Green Party in its policy instruments in the late 1990s and during the early 2000s stated clearly that change was necessary, to legislate for and regulate mortgages to ensure people were not duped into difficult situations. I am worried at the moment, however, that the banks are not doing sufficient stress testing and that they are allowed to offer 100% mortgages or mortgages over 40 years. I am not convinced due diligence is operating. I receive Garda Review and from reading it I see that financial institutions are still offering 100% mortgages. That can put people in a vulnerable situation where they may have the income now but in four or five years circumstances may change and they might find themselves in difficulty.

This Government, however, will legislate and regulate where appropriate to ensure people are better protected. We are half way through a process of considering many of these options, we have the Law Reform Commission report and it has specific recommendations. I am sure my colleagues in Government will act on those.

I thank the Labour Party for tabling this motion during Private Members' business. It is a good time to discuss these issues, before any trickle turns into a flood. We must act as a Government and take action to protect the vulnerable and to protect families.

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