Joan Burton (Dublin West, Labour)

It is regrettable that Deputy Fleming did not make those representations to the previous Government because I do not think it engaged at all. I refer to the Cooney report and various other reports and I do not recall very much happening at that time. Perhaps the Deputy was not engaged in this subject at the time and he has become more engaged since he changed over to being in opposition.

A total of €50 million from the Department of Social Protection is being paid to the banks and we insist that the banks need to engage with and be part of the mortgage arrears resolution process. The voluntary code of conduct on mortgage arrears to which the Deputy refers, which has been signed by all the lending institutions, was arranged by his Government. All the banks are included. He did not open his mouth then. However, it is always difficult to find a resolution between a lender and a borrower which is fair to both. Under the Constitution one must be fair to both sides. My colleagues, the Minister for Finance and the Minister for Justice and Equality, are working very hard to change our insolvency laws because the biggest problem in our system is that in extreme situations it does not provide easy access to an insolvency arrangement. The Deputy probably shares my view that we want to ensure that people who are in mortgage difficulties are able to remain in their homes. This can only be achieved if the lender will engage with the process. The lenders are getting funding of €50 million from my Department and the price of that funding is that those lenders must engage in the mortgage arrears resolution process and they must agree to the code of conduct. In fairness to the lenders, they are doing this; it may not be to the degree we would all prefer but they have signed up. All the banks have specialised sections dealing with these issues. It is a very traumatic issue for individuals who have difficulties and I am confident that this amendment will assist in the process. It is a considerable sum of money, €50 million a year going in interest payments, interest supplements, to the banks. Some of the banks have requested the interest supplement to be paid directly to them once the resolution is agreed. This has been examined because some institutions have complained that in some cases the supplement has not been passed on to the lender by those who received it. This is a relatively small number of cases but that point has been made.

The Money Advice and Budgetary Service, MABS, is expert in this area. Deputy Fleming is a business person and he will understand that in a lending situation, both the lender and the borrower must engage with each other. We all wish to ensure that people keep possession of their family home and keep the roof over their head. I am confident this amendment will assist the process.

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