Anne Ferris (Wicklow, Labour)

I welcome the opportunity to speak on this issue which affects thousands of families throughout the country and in my constituency of Wicklow. The economic crisis which the previous Fianna Fáil Government led this country into was not only a crisis that affected our banking and financial system, but one the effects of which have threatened the homes in which people live. Let us be clear: the home is at the heart of the family. It is where young couples seek to found a family, where children can be raised and where elderly people can retire in later years. The idea that the home could be under threat is a terrifying prospect but one thousands of people face. Something should have been done by the previous Government to address this but it was not. Much like other economic challenges, this challenge has been left to the current Government. We have responded well on this issue.

The Keane report sets out a number of targeted measures which will give options to families who are struggling. In some senses, it throws a lifeline. While a blanket debt write-off will not be introduced given the estimated €14 billion cost of clearing the negative equity in mortgage portfolios, other measures will, I hope, have a direct and meaningful impact on struggling home owners. These measures are set out in a decision tree, albeit one which is not intended to provide an exhaustive list of proposed solutions. The options include a split mortgage, under which a household that is not in a position to meet all the payments owed on a full mortgage could instead repay on a reduced amount and meet the outstanding amount using a pre-agreed formula which would be dependent on a number of factors. Other ideas include mortgage to rent schemes under which the property is acquired from the banks by an approved housing body or through a long-term lease to a local authority. In such circumstances, the State would avoid having to add to a burgeoning social housing list because the housing stock would be purchased with tenants who would be able to remain in their homes.

The reform of personal insolvency legislation must be progressed as quickly as possible. Such legislation will alter the relationship between the mortgager and mortgagee by providing new judicial and non-judicial bankruptcy options. While I am aware the Minister for Justice and Equality is working on the heads of a personal insolvency Bill, the sooner it is introduced the better because it is urgently needed.

The measures outlined in the Keane report are important and necessary. They may not provide a complete solution to the problems facing households but they offer a substantial range of options which should and must be pursued to put a human face on the current financial challenges. Many people bought homes because they believed they would never get on the property ladder otherwise. If they waited any longer, they believed the price of a home in their local community would increase to the point where they would be forced to move away from their community and family support network. They now find themselves in the middle of an economic storm that has left them in financial and emotional shock. The Government must do its level best to help them.

Deputy Wallace correctly noted that the banks must play their part in helping those at whom they threw money, often unwisely, and who are now struggling. I do not share his view that the Government is closer to the banks than citizens. I do not have bankers queuing up weekly outside my clinic for a chat, whereas I have many families visit me who are struggling to pay their debts.

Although times are not easy, we have lived through difficult times before. Many Deputies remember previous bad times which we overcame. We will do so again by showing strength and toughness, two of the defining characteristics of the people of this island. The Government must also display these characteristics in order that we can meet the responsibility bestowed on us by those who voted for us. We must take every possible measure, including implementing the proposals in the Keane report. Deputy Durkan stated that some banks are being helpful. In my experience many of them are not being helpful. I join other Deputies in urging them to do everything possible to help out those who are in crisis.

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