Joan Collins (Dublin South Central, People Before Profit Alliance)

I noted from the Minister's contribution yesterday that no mention was made of Fine Gael's election commitments in the programme for Government. One of the commitments proposed introducing special relief for those who bought homes between 2004 and 2008 within 100 days of taking office. Measures were also promised to force lenders to reduce variable rates by 0.25% within 100 days.

There is nothing new from the Government for people in arrears or in difficulty. This is another retreat and yet more back-pedalling on the part of the Government. Will the Government deliver on a single commitment it made within 100 days? The Minister outlined the supports in place - a mortgage interest scheme, MABS, a mortgage arrears resolution process and a code of conduct for lenders - but there is nothing new in that. All of these were already in place with the previous Government. While these measures are welcome, they are insufficient. Why, for example, does the deferred mortgage interest scheme which was recommended by the expert group only operate on a voluntary basis? Surely, it should be compulsory for all lenders.

Deputy Ellis referred to local authorities. Currently, local authorities cannot deal with the huge housing waiting lists they have, not to mind dealing with those who are losing their homes. Access to the 20% affordable housing programme has been cut, despite the fact this was a programme the Government encouraged local authorities to become involved in with developers. The programme was inadequate anyway. The Government did not provide funding to local authorities last year in their budgets for house building. Instead, it provided a second bailout to developers and landlords.

It is also scandalous and insane that the State, through NAMA, has purchased some €35 billion worth of property, much of it residential. Last year, I placed a motion before Dublin City Council calling for NAMA to hand over residential properties to local authorities for affordable and local council housing. This motion was unanimously supported by Fine Gael and Labour Party councillors. Such a move is key to supporting people getting access to homes in the future. We cannot continue to let property sit idle while people desperately need a roof over their heads, but cannot afford to buy into the housing system.

I was alarmed by the casino auction that took place last Friday week, at which NAMA sold off residential properties. NAMA then said it intended to pump money into the banks to try and reinflate the property market again. That is not the way the country should be going. We should not try to inflate the economy in that way again. We should not try to inflate housing and land prices again. As pointed out by my colleagues, we should be trying to reduce the cost of homes and interest rates for people. People in the public sector bought houses on the basis of their incomes and the banks handed out excessive mortgages over the years, but those mortgages were based on the incomes people had then. Now, people's incomes have been slashed and the Government is talking about slashing further and putting its hands in people's pockets for water and property taxes. People will not be able to survive that.

The Government must take charge of the situation, particularly in the banking area. It must play a role, although as Deputy Higgins stated it may not be able to if his analysis is correct. The solution will certainly not be on the basis of the Government's economic policies of putting its hands back into people's pockets leaving them with less money to pay their mortgage.

See this speech in context