Brian Cowen (Laois-Offaly, Fianna Fail)

Will the calculations include interruptions?

On the question of people who find themselves in mortgage arrears, the matter is under the aegis of the Financial Regulator and the codes involved arise in that body. Primary legislation in that respect is not needed since the codes arise out of arrangements made in terms of how mortgage lenders are required to behave in respect of this matter, based on the monitoring done by the regulator. That is the way in which to deal with the issue as it provides the necessary flexibility to react and do the job.

I welcome the recent statement because it is helpful in the context of the idea that was gaining ground that at the end of the six month period - 12 months in respect of the two main banks - there would be an avalanche of repossession orders and people would be forcibly removed from their homes. That is not the case. The announcements made this week have been helpful. People who are in arrears need to know what is the factual position. While I do not wish to minimise the difficulties such people have by reason of going into arrears and the anxiety and concern that this can cause, they should, as in every situation, make contact with their mortgage lender and sit down to ensure there is a full understanding of their situation. A protocol has been devised by the banks, mortgage lenders and Money Advice and Budgeting Service.

Arrangements are, therefore, in place to ensure difficulties are dealt with in as humane a manner as possible and to acknowledge the difficulties people face. It is not necessary to suggest that there is no framework in place to enable people to deal with this situation as best they can in the period ahead and have the matter reviewed on a six monthly basis. The decision is a wise one and it is important the message gets out and people know what is the position.

I am not suggesting that the difficulty no longer arises because the debt on the mortgage obviously remains. However, rescheduling and working in a fair and equitable fashion with people who are sufficiently concerned that they will meet those with whom they have done business to rearrange and reschedule payments is the right thing to do in everyone's interest. That is the message that needs to get out in order that people do not believe they are being given a grace period of six or 12 months, after which a totally different approach will be adopted. People need to know that is not the case.

The codes in place are based on the arrangements. The financial regulatory authority, IFSRA, is a statutory body and the codes of conduct arise out of the relationship between the statutory powers of the Financial Regulator in monitoring and overseeing how mortgage lenders behave. There is, therefore, a basis for this. The important point is that what happens in practice is that the codes of conduct are adhered to.

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