Michael McGrath (Cork South Central, Fianna Fail) | Oireachtas source

I thank the Minister of State for his response. The problem is that while there is engagement between the banks and their customers, it is not real engagement. I have assisted many borrowers with the completion of the standard financial statement form. While some get a response weeks or even months later, others do not get a response, leaving them not knowing where they stand. Meanwhile, the overhang of debt is causing major problems for them, including stress, lack of certainty and fear of losing their homes. All of this is also acting as a drag on the overall economy. The evidence in this regard is in the official published figures. More than 99% of mortgage restructures to date comprise the standard instruments of interest only repayments, reduced payments for a period of time, extension of the term, capitalisation of arrears or a payment moratorium for a short time. The innovative solutions identified are not being rolled out.

The Minister of State is duty bound to say in this House today that the Government is not satisfied with the manner in which this issue is being dealt with. High level officials in Government and the Central Bank briefed the Irish Independent about their concerns. This issue is not being dealt with. The banks are not facing up to their responsibilities. It is about time we called a spade a spade. The banks have been recapitalised by the people. They are hoarding that capital and are not facing up to the bad debts on their books. I acknowledge that the solution will have to be on a case-by-case basis. However, it must be within the context of the suite of measures which have been identified, rolled out and supported by Government and the Central Bank. This is not what is happening on the ground, which is my reason for raising this issue again.

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