Brian Lenihan Jnr (Dublin West, Fianna Fail)

As I have said on many occasions in this House, the Government is conscious of the high value Irish people place on home ownership and the growing problem of indebtedness and mortgage arrears that home owners face in the current economic climate. The renewed programme for Government sets out the Government's commitments for addressing these issues under the headings, Protecting the Family Home and Helping Those in Debt.

I approved the setting up of the interdepartmental mortgage arrears review group, chaired by one of my officials, for the purpose of bringing together all relevant information in Departments and examining options, including initiatives in other jurisdictions, in relation to the matter of support for home owners facing the problems of mortgage arrears and repossession. The Law Reform Commission, which is under the aegis of my colleague, the Minister for Justice, Equality, and Law Reform, is addressing the issues of debt management and enforcement. In addition I have discussed with Cabinet colleagues the broadening of the membership of the mortgage arrears review group and I will bring proposals to Government.

The mortgage arrears review group is examining options to improve State supports for home owners with mortgage arrears, including schemes in operation in the USA and UK. These schemes are designed to address particular problems for particular groups of home owners and include options for re-financing mortgages, modifying the terms of existing loans, shared equity and purchase of mortgages for the purpose of renting back to the home owner. Other matters to be considered by the group will include the recommendations coming from the review of the Department of Social and Family Affairs mortgage interest supplement scheme, when it is completed, as well as suggestions for improving existing advisory services for persons who are in arrears with their mortgages.

The group will engage with various experts bodies involved in mortgage arrears such as the Money Advice and Budgeting Service, Economic Social Research Institute, the Irish Banking Federation and the Free Legal Advice Centres, among others, as part of its consultations. The Government is aware of the growing pressures on home owners in keeping up with their mortgage repayments, due to unemployment, reduced earnings and increases in interest rates and the need for early action. Nevertheless, the Deputy will appreciate that the overall consideration in terms of timeframes must be that decisions taken to improve current Government support measures involving taxpayers' money are taken in the full knowledge of the overall cost to both State and taxpayer. The group has met on several occasions and work has commenced on bringing forward options for dealing with these matters.

Additional information not given on the floor of the House.

The Law Reform Commission's consultation paper on personal debt management and debt enforcement, published in September 2009, contains an extensive list of provisional recommendations for reform of the law on personal debt that includes provision for a system of non-judicial debt settlement. The commission has indicated that the date for completion of submissions on its paper is the end of January 2010. It aims to have its final report available by end of August 2010.

The Enforcement of Court Orders (Amendment) Act 2009, provides that certain safeguards will apply to the provisions under which a court may hear an application or grant an imprisonment order against a debtor who has failed to comply with an instalment order. The Act ensures that the court will not imprison the debtor unless it is satisfied that he has the means to pay and may also postpone the execution of an imprisonment order until such time as it thinks just. In addition, the court will inform a debtor of the risk of imprisonment and of his entitlement to apply for legal aid. The Act gives the court a clear power to vary the terms of an order to pay by instalments or alternatively to refer the parties for mediation.

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