Joan Collins (Dublin South Central, People Before Profit Alliance)

I will be brief because much of the debate yesterday and today focused on why many of us in the Opposition are opposed to this amendment. I appeal to the Minister again to listen to what we are saying. Any person who takes out a mortgage is told repayment is a priority. One can cut one's private health insurance or cut down on going to the dentist, doctor, etc., but one must pay one's mortgage. This view has been instilled in many people and they pay their mortgages in full for as long as they can. This leads to the question about distressed mortgages. The banks will deal with one only if one does not pay in full for over three months. Thereafter, the alarm bells ring and the banks try to arrange a meeting with the mortgagor.

The first thing those seeking support on foot of losing a job, through a company going bust or otherwise, or suffering from a long-term medical condition, such as a broken leg, and who are planning to return to work eventually are told in my office in Crumlin is that they are entitled to apply for mortgage interest supplement to support them over their period of difficulty, or to keep them out of difficulty. The legislation implies one will not get mortgage interest supplement until one is in dire circumstances. Even at this late stage, the Minister should ensure those who apply for mortgage interest supplement are requested to negotiate with their banks regarding repayments and securing an interest-only mortgage for a period, for example. Families' or individuals' need of mortgage interest supplement would be a signal to the banks that they must be dealt with. At least there would then be early intervention.

The point has been made that those who took out mortgages and who pay every month without ever going near the bank are nervous about approaching banks. When trying to renegotiate, one may have three or four bank officials in front of one, and when one is given a form to fill out, one must go to MABS or elsewhere for help filling it out. When one submits the form, it is checked along with one's income and other loans, and this is quite intimidating. This legislation does not assist those affected in any way. A provision to address the problem should be linked to a bank resolution or insolvency Bill in which every provision is put in place for one to be assisted. Thus, one would not be left on one's own to sort out one's mortgage debt with the banks. Only when such a system is in place should a provision such as that proposed by the Minister be considered. While one is entitled to mortgage interest supplement if one is in distress in the short term, the legislation should be linked to insolvency legislation. The banks are not even obliged to do as I describe at present. The Government cannot tell them what to do; they do not listen to the Government half the time. Therefore, the amendment should be rejected.

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