Séamus Healy (Tipperary South, Workers and Unemployed Action Group)

I welcome the opportunity to speak in this debate. I agree fully with the previous speaker. This is an horrendous situation for people and all of us meet people in our clinics who are in very difficult situations. Many find it difficult if not impossible to sleep at night and many are terrified of the situation in which they find themselves. The vast majority, if not all, are people who want to pay their bills, who want to keep the roof over their head but for various reasons such as unemployment or a reduction in wages or working hours, find themselves unable to meet their mortgage repayments. Many of them will go to extreme lengths to meet those repayments. For instance, they will reduce their food bills or avoid going to the doctor. They will do almost anything to ensure they can meet their mortgage repayments in order to keep the roof over their head. There is something in the Irish psyche that creates a desire to own one's own home and we are prepared to pay for it. However, many people simply cannot meet their mortgage commitments.

I know of a public servant who had an affordable mortgage of €278,000. The same apartment in the same development was on the private market for €475,000. The owner had been able to repay the mortgage but after two reductions in pay and a pension levy and with the apartment now only worth €150,000, he is in negative equity and is put to the pin of his collar to make the repayments.

This is probably one of the better cases because in many cases people are unable to meet their repayments. A constituent contacted me today. She has lost her job and is now in receipt of social welfare payments and is unable to meet the mortgage repayments. I welcome this report and any contribution to this debate is welcome as we strive to solve the problem. It is regrettable that other stakeholders in this area were not involved in the compilation of this report such as MABS and New Beginning and those who are in mortgage arrears. The report would have benefited from such inputs.

Every part of the Irish establishment was effectively telling people to get on the property ladder and that this was the time to start. It was predicted that, at worst, the landing would be soft. People were effectively forced to take on mortgages by the establishment, the banks and by the media, with newspapers publishing property supplements on a daily basis. There was no talk of moral hazard when the banks were bailed out, but there appears to be a huge moral hazard with regard to bailing out mortgage holders who are in disarray and difficulty. Properties should be revalued at current prices and mortgage repayments should be based on the current valuation. That is the only way this matter can be solved.

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