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

I thank the Minister for his reply. My fear following last week's announcement about restructuring of mortgages is that it very much puts the banks in the driving seat. The banks will now be judge, jury and executioner when it comes to dealing with the individual mortgage account of any family in the country. When one looks at the requirement to put a sustainable solution in place, the bank will decide what the sustainable solution will be. The definition requires that the bank be satisfied that the arrangement provides a sustainable solution. The overall package, comprising the revised code of conduct and the legislation promised to reverse the Dunne judgment, and taking into account the banks' veto in the personal insolvency service, means the balance of power has shifted very firmly in favour of the banks compared to mortgage holders.

The second part of my question relates to living expenses. Reports in the media today state that minimum income guidelines will be issued by the new insolvency service and the Minister for Justice and Equality, Deputy Alan Shatter, next week. Will these guidelines also be used by the banks when they deal with individual mortgage holders or are they merely designed to deal with cases that go before the new insolvency service? We all accept the need for consistency of treatment for all borrowers, including those in arrears and those who are just about managing to pay their mortgages at present. Will the Minister clarify the role of these guidelines in respect of individual mortgages and what their status will be?

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