Dick Roche (Wicklow, Fianna Fail)

All estimates of the extent of negative equity appear to be based on general economic assumptions, but it is difficult to assess realistic price levels when property market activity remains low. Being in negative equity does not change one's mortgage payments, and the Financial Regulator has estimated that only a small proportion of borrowers with the covered institutions who are in negative equity are in arrears on their payments. As the House is aware, NAMA, the legislation pertaining to which has now passed into law, is designed to address systemic risk in our banking system. The suggestion that NAMA could operate for householders is not an appropriate means of addressing the issue of mortgage arrears for home owners.

Everybody accepts that we have gone through a difficult period. The Government is confident that measures taken recently, along with the existing supports to which I referred, will assist those who are in difficulty. The advice we all give regularly in our clinics to those who find themselves in this difficult situation is that the most important thing is to contact one's lender and use the facility of MABS. In this way most people can work their way through these difficulties. I accept the Deputy's premise that this is a serious issue-----

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