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

I agree with those speakers who said this Bill is dotting the i's and crossing the t's but believe it has potential to go a little further in regard to some of the issues that arise.

There are two issues I wish to raise, both of which relate to homeowners in arrears with their mortgages who face the repossession of their homes and bankruptcy. There have been 106 repossessions this year alone. Over 200,000 homeowners are in serious arrears of three to six months. None of these people is entitled to free legal advice or aid. They face the brutality of being taken to the High Court, particularly by the sub-prime mortgage lenders. The people have no financial assistance to allow them to obtain a barrister or solicitor, which could cost €10,000 or more. They are already in arrears of €40,000 to €60,000 and face a High Court judge.

This Bill presents an opportunity to address this problem and I will table an amendment with this in mind. I hope I obtain the support of the Minister because the issue will become very serious. People cannot afford legal costs and are entering the courts undefended. They face big companies with money and power and they feel very distraught and distressed, which in some circumstances leads to suicidal tendencies. These emotions were very much reflected at a convention we were able to organise and assist with a week and a half ago on the Naas Road. People facing repossession and eviction met and told stories about their experiences and the cases they face in court.

Having no legal advice or representation puts one in an impossible position. There is effectively no defence against a claim of the bank or the loan sharks. It is for these reasons that the group New Beginning has provided some legal advice and representation free of charge. One has a right to legal defence and it should be provided by the State. A simple amendment would suffice to achieve this.

With regard to the bankruptcy laws, the bankruptcy term should be reduced to five years, particularly in respect of one's principal residence. I do not refer to people with 20 homes or 200 apartments. One should never face bankruptcy in respect of one's principal family home. A constituent of mine who had a small business and remortgaged his home to cover his debts lost his job and was evicted from his home with his young family. He was then advised to seek the protection of the courts through bankruptcy. He is 38 years of age and now faces 12 years in which he will not be able to get a job or earn over a certain amount. He cannot get on with his life. If the bankruptcy period were reduced to five years, it would be a step forward but bankruptcy legislation should not apply to the principal family home or small businesses.

Those who are declared bankrupt face dire circumstances because of the greed of the banks and developers. Deputy Clare Daly made the point that the banks and developers got away with murder. They are walking away from the problem and are putting money into their wives' accounts while people with young children are losing their family homes and being declared bankrupt in the courts.

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