Enda Kenny (Mayo, Fine Gael)

I regard the issue of mortgage arrears as the single biggest issue facing our people at the moment. In that sense, I am well aware of the figures that were quoted publicly yesterday. I reject Deputy Martin's assertion that the Government has been chronically inactive in this regard. Deputy Martin is aware that the Government has taken a number of steps in this regard and has established a specific Cabinet sub-committee which deals with reports from the Central Bank, the banks, the Department of Finance and the other Departments involved. We increased mortgage interest relief for those who bought their first home at the height of the boom and this had a significant impact for them. We increased the mortgage interest supplement to help those who lost their jobs to deal with mortgage payments. The Department of the Environment, Community and Local Government and the Housing Agency are working on a mortgage-to-rent scheme and a mortgage-to-lease scheme and design of these schemes is under way. I confirmed for Deputy Martin last week that a great deal of work has been completed on the personal insolvency Bill which will encourage banks to give borrowers a chance to work their way out of their debt problems. That Bill will be published before the end of June and the Minister for Justice and Equality has indicated that he intends to commence Second Stage of the Bill before the summer recess. I would like to see that Bill take priority at the end of this session and at the beginning of the next session.

The Government will also ensure that the Central Bank will have oversight on a range of issues in this regard, including split mortgages, to deal with genuinely distressed mortgage holders, with a determined distinction between those who cannot pay and those who will not pay. This will be set out in the mortgage arrears resolution strategies now being finalised by each licensed mortgage lender. The Central Bank is currently engaging on these with the banks and the sectors involved in different ranges of mortgages are expected to be before Mr. Elderfield shortly. As Deputy Martin is aware, we have maintained protection, through the Central Bank's code of conduct on mortgage arrears, for distressed borrowers and specialist expertise in legal banking, project and policy analysis are available. The Keane report is being followed through and information is available for people who are distressed in respect of their mortgages. I meet many of these people myself.

The end of December 2011 Central Bank data showed that 70,900 mortgage accounts, or 9.2% of total, are 90 days or more in arrears. This is up from 63,000. I would like to think there will be greater impetus from the banks in this regard. We have had face to face meetings with them on the issue on a number of occasions and I am aware that one bank has put a team of 400 personnel together to sit down with borrowers and work out solutions. There will be a range of solutions, depending on the circumstances that apply. I expect the regulator will report to Government at a meeting of the Economic Management Council on the scale of the issues and on how fast we can make progress to achieve a solution. Nobody wants to see anybody lose his or her house and, as the Deputy knows, this is a very sensitive issue. However, we must find solutions and there are a range of them in the Keane report and these are being followed through by Government. I would like to think the banks will show a greater sense of urgency and will sit down with borrowers and, remembering each case is different, work out the best solution so that people can hold on to their houses and not end up in a situation where they will not be able to meet what is a difficult challenge.

This is the big issue currently and I reject Deputy Martin's assertion that the Government has been chronically inactive on the issue. We have been very proactive.

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