Dara Murphy (Cork North Central, Fine Gael)

I welcome the opportunity speak on this report and note that the Fianna Fáil Private Members' Bill covers the same topic. From what I have heard this evening, it will have support from all sides. When those in political life attend their clinics, there is a constant stream of people who find they cannot escape mortgage arrears. All those who have attended my office have found themselves in this position through no fault of their own. They were encouraged by society, the banking industry and governments to get onto to the housing ladder as quickly as possible. That has left many of them unable to get off the housing ladder now. Deputy Olivia Mitchell spoke about the huge problem facing those in apartments who are starting to have families. When they bought property initially, their ambition was to move up to a semi-detached house and they thought that people coming up behind them would purchase their apartment. They expected to go through the normal progression, moving forward from starter homes. That option is not possible at the moment for many thousands of people. I welcome the fact the Government is preparing legislation, which I hope will find a solution for these people. It could also involve a stimulus for the housing market.

I want to refer, in particular, to other forms of debt. The Minister's response to the Keane report, as outlined this evening, implies that since the MABS has 52 offices, there is perhaps a need for one agency or group to propose guidelines, if not regulations. The response states the banking industry is now operating from a more centralised point. I have a difficulty with this. One of the reasons for our problems is the removal of the relationship between customers and individual branch managers. I refer to individual branch managers who are not pressurised into achieving targets, selling more houses and cars or increasing credit card limits. With a hands-on approach, local managers could consider the total debt of individuals and seek to find a solution in each case. There are excellent staff in the banking sector, particularly in the branch structure. However, they have been much maligned. They have a humane approach and also a great sense of who they are dealing with and how to deal with them. I warn against the aspiration of sticking to the centralised approach. There ought be a case-by-case approach to dealing with people's debt.

A large number of the self-employed, many of whom have for many years been the most innovative and hard working in society, have found it extremely difficult to obtain social welfare. We need to find a system under which the skills of these individuals who have proved they can run businesses and create employment could be rehabilitated, even if, like the country and the world in general, they have run into financial difficulties. If, as seems to be the case, we are moving towards restoring economic growth, sorting out the banks and restoring our status as a sovereign, independent nation, we will have to allow small businesses to move towards economic recovery along with everybody else.

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