Heather Humphreys (Cavan-Monaghan, Fine Gael)

I welcome the opportunity to contribute to this debate on the findings of the Keane report. Mortgage arrears are a serious matter and are affecting people across the country on a daily basis. According to statistics from the Central Bank, around 45,000 households are in arrears for more than 90 days, of which about 32,000 are in arrears for more than 180 days. Those figures give an insight into the scale of the crisis we face. It is easy in the course of a debate for the statistics mentioned to go over our heads without our absorbing their meaning but in this instance we are all aware of the 45,000 household figure. We have all seen the faces of the people behind those figures and encountered the families who are desperately trying to hang on to their homes. We have met those parents who are having sleepless nights because they do not know if they will be able to keep a roof over their children's heads. As Deputy Costello said, this is the human tragedy.

This is an issue that has been brought to the attention of all Deputies in the House. It is not a problem unique to any one area, from Cork to Donegal, or indeed in my constituency, Cavan-Monaghan.

We are all aware of how we came to this juncture. The reckless lending by the banks has been well documented and the purchase of property is now seen as part of the abiding legacy of the bubble. Unfortunately, the lack of supervision and regulation in our banks meant that loans were given to people who should have never have got them.

While it is important we learn from the mistakes of the past to ensure they are not repeated, it is time to move on from analysis of how we got here. It is time to start looking for solutions. The Keane report represents a good starting point. As the Minister has stated, the objective of the Government must be to assist those having genuine difficulties in meeting their mortgage repayments. We all acknowledge the economic climate is unrecognisable from that of just a few short years ago. The aim of this report is to help those who bought their houses at the height of the boom and who have since lost their jobs owing to circumstances completely outside of their control. As a result of a substantial loss of income, they can no longer meet their repayments. There are instances where young couples bought a house, started a family and, subsequently, one or both parents became unemployed or took substantial cuts in wages. That same couple are now in debt, out of work and contending with the many challenges of rearing young children. These are the people who are in real difficulty and who genuinely need help.

We must acknowledge the difference between those who cannot afford to pay their mortgages and those who choose not to pay them. The core objective of Government must be to ensure families are in a position to remain in their homes.

It is clear there is no single remedy that will alleviate the mortgage crisis we face. Instead, the situation must be examined on a case by case basis. Different circumstances apply to different households. A single person in mortgage arrears could have entirely different circumstances from a family in arrears. The Keane report identifies this fact and outlines a number of solutions. Split mortgages would allow those who cannot meet their current commitments to reduce weekly repayments for a period. The trade-down mortgage option would allow families to move from a high value property to a house of lower value when they are unable to meet their current repayments. The aim is to ensure families have a mortgage they can afford. In certain instances, such an approach may be acceptable for the individual but in the case of families, moving home could mean leaving behind friends and neighbours, children having to move school and all the other stresses and challenges moving house can cause. With this in mind, the mortgage to rent scheme could be a positive solution that would allow families to remain in their local community.

It is clear there is no single solution to the mortgage arrears problem. The Keane report is by no means the finished article but it represents a starting point we can build upon. It is important the Government engages with the relevant agencies and groups with a view to building on the findings and recommendations of this report. Groups such as MABS have a long-standing and excellent record of assisting people in difficult financial circumstances. It is important the group's experience and skills are used to good effect when progressing this matter. We must build on MABS's strength and further expand the existing skill set. During my time as a credit union manager, I worked closely with MABS and I have first-hand experience of the great work it does and the respect it enjoys from both clients and creditors.

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