Dessie Ellis (Dublin North West, Sinn Fein)

I would be lying to the House if I stated that the failure of the Keane report on mortgage arrears to provide real solutions for those with distressed mortgages was surprising. It would be naive to expect anything more from this Government and a collection of civil servants and bankers. Nevertheless, many families will be disappointed that the Government they voted into power in desperation owing to their worsening circumstances has failed to deliver the goods. The Fine Gael-Labour Party programme for Government promised much but has delivered little. Despite a commitment to deal with distressed mortgages, none of the measures laid down in the programme for Government have been brought to fruition. Instead, we have the Keane report which states in its preamble that mortgage holders are not entitled to a particular solution and all solutions carry consequences. These consequences will apply not to those who caused the crisis, namely, those in government and the financial institutions who urged people to take out large, unsustainable mortgages, but to those who are struggling to pay a mortgage on the roof over their heads. It is these individuals who must now decide whether to forgo paying the electricity bill or another household bill to pay their mortgage and keep their heads above water. They will face the consequences of a solution if one is to be offered. They also fear the impending household charge.

Almost 100,000 people have residential mortgages which have been restructured or are in arrears of more than 90 days. This proportion of mortgages is much too large to be described as "distressed" and does not take account of the significant problem of general household debt. We have an entirely new housing crisis which must be addressed as quickly as possible. This will require providing people with real and meaningful opportunities to emerge from their desperate circumstances and, through whatever means, have a secure home.

Just as the previous Government failed those on massive housing waiting lists - a problem which persists to this day - the current Government is failing distressed mortgage holders. The solution cannot be found in the banks or by blaming mortgage holders. As my party has outlined, we need an independent distressed mortgage resolution process backed up by legislation to give mortgage holders the solutions they need. This is not a wholly new idea as similar proposals have been made by others, including the free legal advice centres. While responses must be tailored towards individual cases, the principles underpinning the process must be the same in all cases. The principle underpinning the process is not, as the Keane report suggests, to punish people for buying into the hype of the pre-collapse mortgage market or daring to believe that they, too, could own a home but one of sustainability. If a mortgage holder can, with proper support, remain in his or her home and manage his or her debt, that option should be supported, while those who cannot manage their debts must be assured their housing needs will be met. The practice of making citizens pay for the crisis must end. We have paid far too much for far too little. The banks must begin to play their part in developing a more sustainable debt position.

The problem of distressed mortgages and the costs of not dealing with them are spiralling. Inaction will make any solution more expensive. We cannot afford to get this wrong or wait any longer. We must begin the process of restructuring the debt of the thousands of people in mortgage arrears and build a sustainable process which can be shown to be addressing the issues and providing hope that the affected families will not be left alone in the mire or punished for transgressions they did not commit. Reports which blame people for not being au fait with sub-prime market risks or global economic forecasts are worthless, especially when they overlook the failings of the banking sector in creating the crisis and in failing to address it.

Of the billions of euros the banks have taken from us, practically none of it has been used to help mortgage holders. I remind the Government that it was the distressed mortgage holders and their friends and families who put it where it is in the hope that it would listen to their needs and act accordingly. The bankers have failed the country and continue to fail the people, with no return on the massive amounts of money being pumped into the banks from the pockets of ordinary working people. No solution is possible if it does not reflect the role and culpability of the banks. No solution drawn up by the banks for the banks, as is the case with the Keane report, will resolve the problem. The only value of the report is to show the Government it needs to listen to citizens and organisations such as the free legal advice centres and New Beginning and seek solutions for the people they represent.

Can anyone imagine how people in negative equity feel? Some of them face additional problems caused by the use of pyrite in their homes. Some are upping sticks and leaving their homes, including in my constituency. They are returning their house keys to the banks and local authorities rather than be scourged by the problems of debt. We need a sustainable solution because our citizens deserve it.

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