Enda Kenny (Mayo, Fine Gael) | Oireachtas source

I appreciate that. In respect of the comments - the speech - made by Deputy Higgins, I told Deputy Ó Fearghaíl that I do not regard it as being acceptable that the solution arrived at in restructuring mortgages in the majority of cases is merely to put them on interest-only payments for a period when the issue will come back again in any event. That is a recurring decimal, as it were, that keeps the pressure on people because they know their circumstances will not improve in the short term and, therefore, the problem still exists. Bearing in mind the Government's plan for available options, there are requirements of the regulator and the Central Bank for banks to respond by sector and to give detailed reports on what is happening in the various sectors in terms of restructuring of business loans, splitting a mortgage and loan between a residence and a business where the business is being sucked down by virtue of the business person having entered the property market, and the capacity to have trade-down mortgages, split mortgages, restructuring of mortgage payments and forbearance. One cannot give a general absolution because somebody must pay for it all and the Deputy has not indicated who that might be.

The banks have been recapitalised at public expense. The Deputy is aware that the Government restructured the sector from six banks to two. They are recapitalised to the highest level. We are pursuing that discussion at European level where the Council made its decision on 29 June. That said, if Mr. and Mrs. Higgins from place X, for example, have a problem in terms of mortgage distress, mortgage arrears or whatever, general absolution will not reach that far. There must be a direct conversation and dialogue between the borrowers and the lender to arrive at a solution. As a solution, it is not good enough to put people's mortgages on interest-only payments interminably. That does not deal with the requirement to repay the capital and the amount drawn down in the first place. We will be far more active in requiring banks to arrive at a solution that is real and will keep a roof over the heads of people in the majority of cases. The planned insolvency agency will offer a different route, and this acts as an incentive for banks to make these decisions in the near to medium term. I hope they do that.

I respect the Ceann Comhairle's wishes about the nature of the questions.

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