Robert Dowds (Dublin Mid West, Labour)

I agree with Deputy Catherine Murphy's remark on the Keane report. It is regrettable that people who were directly affected by the mortgage problems were not involved in producing the report. Having said that it is a worthy report and it gives a basis to get out of the problem, although it is not the final word on the subject.

I am very glad to have an opportunity to speak on this matter and I commend Deputy Michael McGrath for the spirit in which he has brought this Bill before the House. The issue dealt with in the Bill is very important. As everybody in this House knows, there are thousands of families in Ireland living in terror at the thought of losing their homes. People should not lose the roof over their heads. Many of these families got mortgages for overpriced houses which they cannot now afford to maintain, due to unemployment or reductions in their income, or the fact that the mortgage was too big in the first place. These are the true victims of the property bubble which crippled our economy.

It is essential we remove the anxiety and fear which has engulfed so many families, by reassuring them that they are just as entitled to assistance from the State in finding a solution to their problems as any bank which had the benefit of receiving money from the Exchequer in the last few years. It is my firm conviction that a strong message must go out to people who are struggling with mortgage repayments on their family home. That message is that the institutions of the State are firmly on their side, as long as they make a genuine effort at trying to meet their obligations to the best extent that they can. We must provide the people who are struggling with that level of reassurance.

Everybody can appreciate that as difficult as it is to lose one's job, it is an entirely different prospect to lose one's home. One of the reasons I am urging the Government to fast-track the personal insolvency Bill and measures for debt resolution is the potential for severe social strife if levels of repossessions start to increase over the coming years. It has been borne out in economic data that as a people we have a particular attachment to our own homes, sometimes to our detriment. There is nothing that would infuriate our citizens more than the sight of people being evicted from their houses by an order from banks which themselves would be bankrupt had it not been for the intervention of the taxpayer. They would be justified in being furious at such a development.

In the event that there is no option other than for mortgage holders to relinquish ownership of their homes under a leasing scheme, it would be much more appealing and correct for individuals to rent their homes from the local authority rather than from the bank. Several people who are in difficulty have told me of the fury which came over them when they heard of the proposal to rent the property from the bank. I believe that if this can be avoided, it should be.

It is essential that a person's entire debt is taken into account when he or she is being evaluated for debt resolution, rather than just a single large debt such as a mortgage. Deputy Healy mentioned this point. Those in difficulty with their mortgages are much more likely to have other debts which also need to be paid off. It is important that a person's entire debt is taken into account when deciding on the correct resolution.

I urge the Minister to ensure that groups such as the Free Legal Advice Centre and MABS are consulted before a final decision is made on the set of measures which will be taken to help people in distress. I look forward to seeing this in the personal insolvency Bill he is preparing.

While I support the concept behind the debt settlement and mortgage resolution office, I have some concerns about the enormous amount of power which such an office would have in considering the debt levels of citizens and I remain to be convinced that there would be adequate supervision of such power to ensure it was not open to abuse. While I appreciate and support the idea behind this office, the practicalities of such an office need to be ironed out.

Without wishing to be alarmist, I want to stress once again how important it is that the institutions of the State stand behind the people on this matter. My own personal political hero, Michael Davitt - his own portrait is by the front desk at the entrance hall - campaigned on an issue that was not unlike the issue which we have before us today. His deeds and actions should be remembered at a time like this, and he fought so that people could retain their homesteads instead of being thrown out on the street. We would do well to remember the thoughts and actions of Michael Davitt when deciding on the assistance to give to people in mortgage difficulty. Let us fast-track the Government legislation which will help people out of their debts. I hope that good progress will be made before Christmas.

The banks have been substantially recapitalised. Some of that must cover the proportion of mortgages which people cannot afford to repay.

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