Caoimhghín Ó Caoláin (Cavan-Monaghan, Sinn Fein)

Legislation is overdue to address the huge rate of mortgage indebtedness and the great distress it is causing to people throughout Ireland. This Bill, which has been long promised and awaited, received much favourable comment in the media on publication, which gave renewed hope to people in serious distress with mortgages. My fear now is that false hopes have been created because while this Bill is a measure of progress, it does not go far enough to address the social and economic crisis that is mortgage indebtedness in this country today. Most disturbing is the continuance of a creditors' veto, which should be removed on Committee Stage. I call on the Minister to so do.

The stark reality is that some families are going without adequate food in order to service mortgages and keep a roof over their heads. They are in the iron grip of money lenders. Our people should not have to live with these strains. The "What's Left" survey published on 9 July by the Irish League of Credit Unions shows that 1,820,000 people are left with €100 or less each month after bills are paid. I have no doubt that mortgage debt is a dominant factor in this situation. From my work as a Dáil member in my constituency and as my party's spokesperson on health, I am conscious of the serious impact of mortgage debt and consequent poverty on people's health, in particular, their mental health.

CSO figures published this week show that the number of recorded suicides in this State rose to 525 in 2011, an increase of 7% on the previous year. The record shows that 439 men and 86 women took their own lives in 2011. I have no doubt that the recession and burden of debt on individuals was a significant factor in this increase, a further increase on the increase recorded the previous year. These are only the recorded figures. The number of unrecorded suicides is much higher. People are struggling desperately to pay off mortgage debts incurred because of outrageous house prices, which were inflated by rapacious developers, property speculators, banks and irresponsible so-called regulators. This was the Fianna Fáil property bubble, the legacy of which is poverty. The property boom induced a kind of madness. People who could barely manage one inflated mortgage were actively encouraged by banks to take out a second or further mortgages on investment properties. The delusion was created that by not doing so they were losing out. Unfortunately, many people fell for this delusion and are paying the price today. However, the vast majority of people did not participate in the property craze. They were simply trying to buy a home to live in, in respect of which they were forced to pay grossly inflated prices because of the greed and neglect of others. Now tens of thousands of them face penury, possible bankruptcy and the loss of their homes. Thousands have already suffered this fate. To the extent that this Bill may remove or postpone that threat for some, it is welcome. Our concern is, as I have already stated, that it does not go far enough.

At the end of March there were over 116,000 mortgage holders in serious distress. Almost 100 mortgage holders fell into distress each day during the first three months of 2012. Also in the first three months of 2012, there was a 28% increase over the last quarter of 2011 in the number of repossessions. Some 170 families lost their homes in January, February and March this year. That may seem a relatively low number but the increase is ominous and, of course, this is only the tip of the iceberg of distress. Beneath the surface is a mountain of misery for people struggling day in and day out to meet crippling repayments.

The range of concerns that Sinn Féin has about this Bill have been outlined already and will be addressed on Committee and Report Stages. I urge the Minister to take on board our concerns and those of others who want an improved Bill with a real impact. I hope that is what we all want. FLAC has pointed out that the legislation as it stands still does not impose a legally binding obligation on lenders to accept reasonable applications from customers in arrears. Also the Bill does not provide a right for debtors to appeal a creditor's decision. These are serious faults in the Bill, which must be rectified. I thank FLAC for taking the time to engage with Deputies and Senators on this legislation.

We recognise that the Bill provides some additional protection for the family home. A personal insolvency practitioner proposing either a debt settlement arrangement or a personal insolvency arrangement must try to ensure that a debtor can maintain the family home, unless the mortgage is unsustainable or unsuitable. To what extent will this protect people from losing their homes? To how many people will the provisions of this Bill apply and how will they work in practice? What guidance will people have through the new mechanisms established by the Bill? These are all important questions. Mortgage holders and their elected representatives will need clear and adequate information on the workings of the legislation.

As I stated, this Bill has created a hope and an expectation among many people. Many will look to us their elected representatives for guidance. I urge the Minister, his colleagues and relevant agencies to ensure that the process is transparent and accessible and that it is responsive to the needs of citizens. The only we can ensure this is to guarantee that the Bill will as it proceeds through its remaining Stages become the Bill we would all wish it to be. The first issue to be addressed is the removal of the veto on the part of the lending institutions.

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