Terence Flanagan (Dublin North East, Fine Gael)

I thank the Ceann Comhairle's office for the opportunity to raise this issue that needs to be urgently addressed. There is a need for the Minister for Finance and the Government to make a decision, as a matter of urgency, on whether to extend the moratorium on house repossessions or face to the reality and introduce a NAMA-type scheme for householders, especially those people who have large mortgage arrears and face the strong possibility of their houses being repossessed. We know from new figures published this week by the credit agency, Moody's, that 6,400 householders did not make any form of mortgage repayment last year. It is critical that some sort of an arrangement is arrived at immediately, otherwise these people will be at severe risk of losing their homes. The one-year moratorium on house repossessions is due to finish at the end of this month. These situation in which these people find themselves needs to be addressed as a matter of urgency and they need assistance.

The Minister for Finance has only kicked to touch on this issue. The Government introduced the moratorium on house repossessions but since then it has not given any guidance or reassurance to anyone who finds himself or herself in difficulty and faces the prospect of losing his or her home. The Fine Gael Party has introduced the homeowners support scheme, which will help and protect people and ensure that will retain their home. Family protection is what is needed.

There are more than 100,000 people on the housing lists throughout the country. The last thing we need is an increase in the numbers on those lists as a result of house repossessions. There are 300,000 vacant houses and the Government should help out ordinary people who find themselves in extreme difficulties

The Fine Gael homeowners' support scheme would allow NAMA to take an equity share in a property after negotiating a write down in the outstanding debt with the relevant financial institution and then the property owner would have an opportunity to service that debt directly with NAMA and an opportunity to buy back the equity stake if the owner gets to sell the property at some stage in the future. Consequently, NAMA would realise the money at the point of sale.

We know from figures published by the Financial Regulator that at the end of the September last year, 331 residential properties were repossessed by banks, which equates to one home a day having been repossessed. Yet the Minister for Finance, who is completely out of touch, said in his Budget Statement that only 20 homes were repossessed last year, which is completely at odds with the statistics. The Minister of State might comment on that in his reply.

The reality of repossession was highlighted clearly in the media in December in a High Court case involving a couple who had lost their jobs. Stepstone Mortgages would not re-negotiate an agreement with the couple to accept a mortgage repayment of €800 a month. It sought a payment from them of €2,400, which they were not in a position to meet. These people were not afforded an opportunity by that institution or any help by the Government and now find themselves as part of the homeless statistics and housing statistics. The Government and the taxpayer will have to have to pick up the tab. Clear intervention and help is required for people who find themselves in this difficulty

We know from the CSO that 77,500 households are in arrears on their mortgage repayments. The problem will snowball in the months and years ahead. It is imperative that action is taken now. The mortgage interest supplement is inadequate and is clearly not helping those who need help repaying their mortgages. The Government must loosen the qualifying conditions and include sub-prime lenders among the qualifying lenders.

I hope the Minister will have some good news. He should either extend the moratorium on housing repossessions or actually face this problem head-on.

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