Dominic Hannigan (Meath East, Labour)

I am glad to have the opportunity to speak about the Keane report. We are all aware of the difficulties many of our constituents are facing in trying to make ends meet. This is particularly the case for those who bought their own homes and have seen a reduction in their incomes and, hence, their ability to repay their mortgages. It is estimated that there are at least 70,000 families in mortgage arrears and many thousands of other families are just about able to pay their bills. Further reductions in income such as through deductions in the number of hours worked or increases in taxation would mean many of them would be forced into arrears or face significant difficulties in paying their bills.

It is for this reason that the Keane report is timely and, undoubtedly, it is a step forward. It provides much for us to discuss and I hope discussions such as this will help to shape the package of solutions arising from the report. It is necessary to listen to what other organisations outside the House are saying about the report. I welcome the comments of organisations such as FLAC, MABS, Threshold, New Beginnings and others. Their views can help to shape the overall solutions we offer to those who need help. These solutions are needed as soon as possible, as there are many who are hurting now and want to see action. There are also many who want to see the proposals go further - for example, I know some want to see the issue of negative equity addressed. However, let us be clear. The Keane report and this debate are not about negative equity but about those in arrears who are finding it increasingly difficult to pay their bills. Some of them are in negative equity but some may also be in positive equity. Up to now, very few concrete proposals have been put on the table. The debate about potential solutions has suffered because we have not been told the quantum of cases involved or how much money is involved. There has been a lack of data, to which FLAC referred in its presentation to the finance committee yesterday.

For the next step, before potential solutions are introduced, we need to find answers. For example, how many are in a distressed state? How many face short-term or medium-term problems and how many are in a situation where something is non-viable? Of those in arrears, how many are in positive equity? We also need to know what the costs are of removing somebody from his or her home, forcing him or her to give up his or her mortgage and then rehousing him or her. It may be cheaper to leave him or her in situ. We also need to talk about the issue of who is responsible for unpayable debt - in short, who pays? We must address questions such as whether somebody in arrears but in positive equity should be treated differently from a person in arrears and in negative equity. In the discussions to date there has been much talk about the parking of debt and providing mortgage holidays. If we were to do this, who would pay the interests on the loans? Should it be society, via the banks, or the homeowner or a mixture of both? If we take over a property in respect of which there is a non-viable mortgage, who will be responsible for any loan shortfalls? Should they remain with the original homeowner, or should they pass to the bank or should it be a mixture of both?

The Keane report provides us with high level solutions. The next step will be to flesh out these solutions and put meat on the bones of the proposals made. A range of solutions will be needed. While I believe there are solutions, we need a debate to achieve buy-in across society as soon as possible. This is because the solutions to the problem may involve a cost to the general purse, although such costs might be less than the alternative of not intervening. It is important that we get this right, that we act fast and that legislation, if necessary, is brought forward. I see the Keane report as being a significant step forward, but we need to move quickly and listen to other groups. We need to undertake a hard analysis and turn the proposals made in the Keane report and elsewhere into practical solutions.

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