John Lyons (Dublin North West, Labour)

I welcome the opportunity to speak about the issue referred to. There has been much comment on the Keane report since its release and no more than other Members, I have been contacted by many constituents with queries about it. It is a vital issue, one that has great social and economic consequences.

I remind Deputies listening to the debate and those in the Chamber - few though they are, which is always disappointing when one makes an effort to speak - that this issue has been developing for a number of years. The Labour Party while in opposition tabled a Private Members' motion on the issue. The issues we are facing are not necessarily new, but the attitude and response of the Government are new.

Like Deputy Hannigan, I look at this issue from the point of view of how best to serve those experiencing mortgage arrears. I welcome the publication of the Keane report as it reflects this approach, namely, its main objective is to keep people in their homes. Everybody in the House can draw on a consensus that nobody wants a person to lose his or her home. A "home" does not necessarily mean one he or she owns, as it is a place in which people live, to which they belong and where their families grow up. It has a wider meaning than simply that of a physical entity of bricks and mortar.

It is obvious that we have to consider the social impact of a family losing their home. As we all know, keeping families in their homes and connected with the community is of the utmost importance at this time. The main message I took from the past week is that people just want to be treated fairly and to be given a chance, whether it be, unfortunately, to move to a more suitable property or an affordable home, or to just have somewhere to stay. Deputy McLellan noted that the crisis mainly affected people of my age, those in their 30s. Most Members are aware of the circumstances of those in this situation.

Having spoken to people about the report, it is evident that the range of circumstances in which people find themselves, mostly through bad fortune, has cemented the need for a case-by-case approach focusing on the needs of the individual mortgage holder. This is one of the points suggested in the Keane report, namely, a case-by-case assessment rather than a one-size-fits-all approach. It is very easy to propose a one-size-fits-all solution to a crisis of this magnitude, but it is entirely different to implement such a proposal.

An indicator of the complexity of the issue was given yesterday with reports that the Government was in discussions with the troika and the banks about possible mortgage holidays to enable people to pay off their other debts, that is, personal debts. As Deputy Hannigan said, this, too, would have consequences. It is a positive development, but the point is that having to seek approval from the troika in the first place, given that we are dependent on it to finance the State, is an indication of the complexity of the issue. Those calling for a one-size-fits-all approach are, therefore, mistaken. This requires a range of measures, of which the Keane report outlines a number, from new mortgage options to independent expert advice.

One of the main responses to the issue will be the introduction of personal insolvency legislation. Many of the recommendations made in the Keane report are based on the implementation of such legislation. It has been stated by a number of commentators that overall debt levels have to be examined to resolve the issue of an individual's debt. That is true, as just dealing with mortgage debt in isolation does not recognise a person's ability to pay his or her debts. Moreover, the penal nature of the legislation is wholly inappropriate in dealing with the debt crisis many now face. I look forward to the publication of the personal insolvency legislation mentioned by Deputy O'Dowd.

I wish to make a few points on the report. First, the role of MABS in playing a full part in this process must be identified and supported. In the Chamber last Tuesday evening the Minister for Justice and Equality, Deputy Shatter, detailed figures showing the number of mortgageholders who had approached MABS to seek help. This demonstrates the developing nature of the problem and that the service's role and expertise in the area must be harnessed to help new independent mortgage advisers.

As I am running out of time, I will skip to my final point. Another issue that must be considered is what is expected from banks. I welcome the recent comments by the Financial Regulator, Mr. Matthew Elderfield, on possible restrictions on banks' ability to raise variable mortgage rates, particularly if such actions were seen to push more people into mortgage arrears. Given the support the people have given to the banks in recent years, the latter must now play their role in dealing with this issue.

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