Jerry Buttimer (Cork South Central, Fine Gael)

The issue of personal debt is one of gargantuan concern. The backdrop to this Bill concerns families in crisis, which has a profound impact on the personal lives of many of our fellow citizens and the community at large. It is fair to say that relationships are in trouble and people are struggling to survive. The issues of debt settlement and mortgage resolution require urgent joined-up thinking by the Government. I welcome this debate and the fact that we will not have a vote on this Private Members' Bill.

The Bill proposes mechanisms for tackling personal insolvency, some of which are welcome and worthy of further detailed consideration. If we are to provide non-judicial solutions to personal debt, these must be accompanied by simultaneous reform of the judicial options. While I welcome the Bill, as presented it fails to deal with the issue of bankruptcy.

Any proposal aiming to tackle debt issues must comprehensively address personal and mortgage debt. MABS has made the point that "it is counter-productive to address mortgage arrears without simultaneously seeking to manage the issue of personal debt". The reverse can be said of the proposal before us. It is pointless tackling personal debt without tackling both mortgage arrears and the entire bankruptcy regime.

The Minister for Justice and Equality has commenced reform of bankruptcy laws and has indicated he will introduce comprehensive proposals dealing with judicial and non-judicial solutions. It is important that we do not delay in rolling out a new personal insolvency regime that facilitates people in negotiating reasonable and practical settlements. That is why it is vital that our lending institutions be fair and work with and listen to people who are struggling. Agreed solutions must ensure that people with unsustainable debts can continue to participate fully in society. Irrespective of whether they bought a primary residence or a buy-to-let property, citizens could not have envisaged the economic devastation that has befallen us. Therefore, we have an obligation to work with them. How many people honestly anticipated the level of unemployment, the huge reductions to salaries, the mounting mortgage arrears of many citizens and the considerable decline into negative equity?

This Bill superficially recognises the difference between owner-occupiers and owners of buy-to-let properties in so far as the mortgage resolution order is only available for family homes. However, a comprehensive resolution must recognise the interplay between buy-to-let properties and the consequential impact these may have on family homes. As Deputy Dowds stated eloquently, it is important that we do not allow circumstances in which people are forced, under any guise, to leave their family homes. We must never, under any circumstances, go to back to the days when people were left on the streets.

A negative aspect of the proposed mortgage protection order is that it has the potential to prevent those benefitting from it from continuing to run their own businesses. The Bill contains a blanket requirement to disclose the mortgage protection order to all those with whom one does business. Where borrowers actively engage with lenders on negotiating a rescheduling of their debts, this ought not to affect their ability to earn a living and carry on in business. The Minister of State, Deputy Perry, who is doing a sterling job as Minister of State responsible for small and medium size enterprises, is fully aware of the points I make. We must support people in trying to create jobs. We must support small enterprises and small businesses to help us trade our way out of our economic difficulties. We must help people face the hardships they are enduring with practical support and measured options. As the Minister said, we must recognise that losses are likely to accrue in financial institutions.

Where there is negotiated rescheduling, people should not be adversely affected in carrying on their duties and engaging in business. At the very least, their credit ratings should not be affected solely because of a negotiated rescheduling. Mortgage arrears and personal debt are complex problems that require careful cross-party consideration and support. There is no easy solution or silver bullet but we must seek a fair balance between the competing interests of the taxpayers and those with unsustainable debts.

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