Mattie McGrath (Tipperary South, Independent)

I am delighted to speak on this motion and I compliment Deputy Pringle on doing the legwork in getting it put forward. It is my own fault that my name was not signed to it because I did not get it in on time, but I fully support the motion none the less.

I also compliment the Minister on his appointment and wish him well. The difference in attitude since he changed sides in the House is mind boggling, but that is government and this is the Opposition. None the less, it is not much solace to hard-pressed home owners.

Home owners are carrying a disproportionate burden of debt and are suffering the hardship of negative equity. The extent of the property crash and the related banking crisis were the result of reckless bankers borrowing from other reckless bankers who behaved in a speculative way but who are now demanding their money back at any cost. They were allowed to do all this by the Government of the day and by the Minister and his party, of which I was a part but with which I was very unhappy. People on the Government side of the House might be unhappy at the moment, but they have to do things when in government owing to the situation with the Whips. It is an unsatisfactory situation.

The regulation involved has been described as light touch, but we all know that regulation was non-existent. The saddest part is that the regulators retired with pensions. We were told they had contracts but according to any layman's interpretation, the contracts were not fulfilled. Anyone who is in business knows a contract is a two-way document and that if one person does not fulfil it, the contract becomes null and void and that person suffers the consequences. Many home owners find themselves in this situation because the paperwork and the legal background for these loans were not properly done. Tests on the ability to repay were either overlooked or were just paid lip service. Many loans were given out at 110% and 120%. Where was the regulation and where was anyone to say "stop"?

There are many parties to this and the person who signs on the dotted line is expected to have studied the contract. However, all the advice was flippant and gung ho. The money was like manna from heaven and there would never be an end to it. As we saw last week in the Nyberg report, alternative options to the blanket guarantee were not seriously considered either. When the bank guarantee was brought in, we were all told at very short notice and backbenchers from the Government parties were told it was a doomsday situation and that we had no choice. We have asked many times since why there were not other options, but it was all hush hush. I am very suspicious of the whole thing.

Ordinary people are bearing the brunt of these failures and many people, including young families, are being squeezed to the point of despair. The previous topic for debate was suicide prevention, and unfortunately many people are being driven to suicide. It is creating huge pressure and it is unfair.

I fully support this motion. We should look at various ways to solve these problems. We should be able to extend the time limit on the loans. We should look at the human situation of families trying to live through every day under enormous pressure. All the money is going into paying off the mortgage, even though many do not succeed in doing so. In some cases, it is only paying the interest. These people cannot be expected to play any reasonable part in raising their family with any modicum of self-belief, self-respect or training for the future, not to mind empowering their children to live normal lives. We all know the expensive pressures on parents with children in schools, at parties or whatever.

People are willing and able. They must be given a chance. They must be dealt with fairly. Why should they be expected to pay for the sins of the developers, speculators and bondholders? They are being burned. They are at a new low after just two months, having been promised an awful lot by this Government which has just changed seats and pursued the same policies. That is very disappointing for them and it does not give them much hope. We will have to examine possible ways to allow these people to trade their way out of this. They are willing to do that if given the chance.

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