Maureen O'Sullivan (Dublin Central, Independent) | Oireachtas source

The experience of losing one's home must be added to those most stressful experiences in a person's life. I acknowledge the Government inherited a severe mortgage arrears crisis and that its amendment outlines the steps taken to address it, including the mortgage-to-rent scheme, the Personal Insolvency Act and the engagement by banks in mortgage advice. However, the point is that if all these measures were working, people and society would be seeing the benefits and one would be able to discern a decrease both in the number of mortgage holders in distress and in those at risk of distress. Instead however, we are seeing the severe impact of the mortgage debt crisis. At the end of 2010, statistics indicated that one in ten residential mortgages were in trouble. A few months later the figure was one in nine mortgages, then one in eight and this evening's Sinn Féin motion states the figure is one in four. Consequently, it is obvious that the measures are not sufficient. Moreover, one week ago Professor Honohan stated, "I fully agree that not enough has been achieved on the mortgage arrears". He was expressing his frustration, and that of the Central Bank, that the performance of the banks is not good enough. He spoke of the dilemma that were the Central Bank to issue a directive to the banks, it would give the latter an out and they could then absolve themselves of all responsibility. However, responsibility does lie with the individual banks which gave the mortgages.

I accept the responsibility on the individuals who took out such big mortgages for their dream homes or for the purpose of starting a property portfolio. However, the banks and lenders also have a responsibility for facilitating and encouraging such borrowing by giving 100% mortgages, not insisting on deposits and sometimes giving top-ups for furniture and extensions. As for the responsibility of those in marketing, advertising and auctioneering, they all played a part in creating that property bubble with the extortionate prices being paid between 2001 and 2007. At the time, prices such as €250,000 and more were paid for houses and apartments that people knew were worth, at most, one quarter or one half of those amounts. The really unlucky ones are those who bought in the period between 2001 and 2007. They are suffering and this suffering is compounded by the additional taxes.

Repossession is not the answer because that will lead to further speculation in property, another property bubble and more rogue landlords and speculators and my constituency of Dublin Central certainly has enough of those. Repossession also puts additional pressure on the local authorities and Dublin City Council, for one, does not have sufficient housing stock. In addition, there would be further fuelling of the private rented sector. I was struck by one newspaper headline today, which stated that AIB was to engage with customers in mortgage arrears. I thought this would be something that would happen quickly but when I read the article more closely, I did not get any sense of immediacy. While I acknowledge this debate is on mortgage arrears, I wish to make one further point before concluding. In listening to and reading the comments from, for example, the 24/7 Frontline Alliance, one factor to emerge regarding the cuts to people's salaries pertained to their inability to get a mortgage with consequential effects on their wish to start families.

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