Anne Ferris (Wicklow, Labour)

I am pleased to have the opportunity to speak on this issue, as it is one that affects thousands of people around the country, not least in my home constituency of Wicklow, and has recently been highlighted in the media.

These past few years have been difficult for many home owners who are struggling to keep their heads above water. I have been contacted repeatedly by constituents from Bray to Greystones and from Arklow to Baltinglass who are worried about how to cope with mortgage payments they cannot sustain. There are too many in negative equity and too many who bought at the height of the market for fear of being left behind by a market that eventually had a hard landing.

The Government, I know, is doing what it can to help people caught in these untenable situations. I have in past times welcomed such initiatives as were contained in the Keane report, and I look forward to seeing the personal insolvency Bill passed as soon as possible. Indeed, as Vice Chairman of the Joint Committee on Justice, Defence and Equality, I very much look forward to hearing from interested parties with regard to the heads of the Bill, which will come before the committee soon. While I welcome the actions that are being taken by the Government on these important issues, I cannot understand why the recent budgetary measures on mortgage interest relief have not been passed on.

Last week I heard from a young couple in Blessington who are in severe financial difficulty. The man was employed in the construction industry and was earning great money during the boom. The woman is a homemaker who looked after their three young children. They bought a very comfortable home a few years ago to provide for their growing family, when they could afford to pay for it. They paid more than €500,000 for this house, but in today's market it is not worth even half that amount. He has lost his job and they are struggling to keep up with mortgage repayments. They worry for their future and the future of their children. They told me that anything that would make their lives a little easier would be very welcome, and this included the mortgage interest relief.

I have a number of questions for the Minister. Why has the situation arisen whereby the computer systems of the Revenue Commissioners are not in co-ordination with those of the banks? How is it that the more than 270,000 people who are eligible for this relief are being forced to wait? People are trying to balance their personal budgets on a daily, weekly and monthly basis and they need to have more certainty on issues such as this. Can the Minister confirm when this problem will be resolved? I understand from local media reports that the necessary alterations might not be made until April. Why would there be such an extensive delay? How much will it cost the State to bring the computer systems into line with each other? Are any other payments affected by this lack of communication?

Can the Minister confirm which financial institutions have passed on the interim rate of 25%? Can he say why most customers who have been switched to the interim rate have not been informed of the change by their respective banks?

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