Brian Hayes (Dublin South West, Fine Gael)

I thank the Deputy for raising the matter. He assured me that this is his first time to speak on Topical Issue Matters and it is also my first time. I hope it proves to be a more useful engagement on the issues.

The issue to which he referred, on which there is common cause among all Members, is that no family home should be lost because of inability to pay a mortgage. The programme for Government proposes to introduce "a two year moratorium on repossessions of modest family homes where a family makes an honest effort to pay their mortgage". Of course there will always be circumstances in which it may be in an individual's interest because of burdening debt to get a fresh start. However, in the great majority of cases, including the two examples the Deputy put on the record, we must use as an instrument of public policy a clear desire and determination to ensure people can stay in their homes and work through their financial difficulties.

As the Deputy is aware we now have in place the recommendations of the Cooney report, which came to a conclusion last year. The biggest new issue from that is the proposed introduction of a deferred interest payment whereby if people can pay two thirds of the interest on the mortgage, one third can be set aside. Given that it has taken eight months for this system to be introduced, we must ask whether the banks are operating this. Are people seeking it or even aware of it? When people get into the kinds of difficulties the Deputy mentioned, the first objective must be to get to some manageable payment, regardless of how small, for a period of time to see if the person can work through his or her difficulties. The Minister for Finance has been clear in his direction to the banks and lending agencies to ensure that option is available to people.

The Government's economic council, comprising the Taoiseach, Tánaiste, Minister for Finance and Minister for Public Expenditure and Reform, has asked for a report on this issue by the end of the month to analyse what further action can be taken. The Deputy rightly referred to the mortgage interest relief component, rent supports and now the new deferred interest proposal, but not enough is being done. Many banks are now restructuring debts, but the question is whether they are doing so in a realistic manner. The most recent information worryingly indicates that even on those mortgages that had been restructured, a significant proportion got into difficulty again, which begs the question as to whether banks are being realistic about what people can afford to pay.

The Government is acutely aware of the issue. The economic council, a very important sub-committee of Cabinet, has asked for this report by the end of the month. Following that report, which I presume will be published, we will then consider what additional measures can be taken by the Department of Social Protection, the Department of Finance, other Departments, the Central Bank and others to ensure we manage the issue and achieve the objective of ensuring that people do not lose their homes.

The level of repossessions in this country by comparison with the UK and other countries is still relatively low. I believe my prepared script points out that figures from the Central Bank show that by the end of June this year, 54 residential properties here had been repossessed. In the same period there were 119 voluntary surrenders. Those figures are relatively small in the context of the numbers with which we are dealing. The bigger issue is the insurmountable debt people have and in time the Government will introduce additional measures to address that and make it manageable.

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