Michael Noonan (Limerick City, Fine Gael)

We want provision in law, as was explained by the Minister, Deputy Shatter, and myself when we launched the heads of the Bill, that is not a full bankruptcy hearing to drive mortgage holders into a bankruptcy position where bankruptcy legislation was never intended to deal with the problems of somebody with an impaired mortgage. We have also decided that it is insufficient from a policy point of view to leave case-by-case arrangements with the lending authorities to the discretion of lending authorities without the force of law underpinning it. The proposal to which Deputy Michael McGrath refers is to give judicial recourse, short of full bankruptcy proceedings but also well in advance of voluntary arrangements, and that is the space we are trying to fill. The legislation in that respect is being drafted in accordance with the head that is published.

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