Enda Kenny (Mayo, Fine Gael)

The negative equity generation are directly impacted on by this issue. Thousands of people are in negative equity because of reckless lending processes in banks. The Deputy is aware that the Government has downsized the number of banks to two pillar banks, restructured their boards and recapitalised them. I note the comments of the Bank of Ireland which is moving back towards private funding, but I disagree with Mr. Richie Boucher, its chief executive, when he says Government personal insolvency legislation will increase interest rates for mortgage holders who are paying their way. The Personal Insolvency Bill is for those who have a series of difficulties across a spectrum of circumstances. It should be made clear, as the Bank of Ireland is aware, that the banks have been recapitalised to deal with mortgage distress and with circumstances where people are in serious difficulty with their mortgage. The Bill has been designed to deal with people in difficulty.

It would be nice to implement the Keane report overnight. The focus of the Government is on dealing with the range of mortgage difficulties in the best way it can. I do not have all the answers, but I am confident the Keane report, the Personal Insolvency Bill and the impact of the budget and the Finance Bill in stimulating the indigenous property market will lead to progress in this regard. It is wrong to suggest, as I saw in a newspaper today, that the Personal Insolvency Bill will cause interest rates to rise for people who are paying their way and facing challenges in their mortgage. That is not the intention. The banks have been recapitalised to deal with cases in which the holders of a residential mortgage are in serious distress. It is a matter for the banks and lending institutions to sit down with individuals and work out the best prospect.

The Deputy and I both want to see everyone hold on to his or her house, in so far as that is possible. The schemes mentioned have to begin in some form or another. The pilot schemes are starting with 1,000 householders and will eventually provide for 10,000. We must analyse them to see if they have the right structure, if there are weaknesses in them and if they meet the demands and requirements of the people who have mortgage problems and move on to achieve the best effect.

I understand the urgency with which the Deputy makes the point, to which I am sympathetic. When the Personal Insolvency Bill has been subject to a full range of comments and proposals from Members of the Oireachtas, the Government will deal with it as quickly as possible. This is difficult and complex, but it is necessary to get it right.

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