Pearse Doherty (Donegal South West, Sinn Fein) | Oireachtas source

The mortgage crisis and the approach that has been taken to it for the last number of years were not created by the Minister. The crisis has been there for the last four or five years. However, the problem now is that the Minister has again left it with the banks and, as Deputy Michael McGrath said, the same concerns exist. I genuinely hope the targets and the approach being taken by the Central Bank produce results, because we need those results and more mortgages back in a sustainable, restructured position. However, all the evidence points to the fact that the banks will do the bare minimum. We own AIB. It has been recapitalised to write down the value of those properties to current market value, so the only threat the Central Bank can impose on AIB is that it will write down the value of those loans to the current market value, which it has been recapitalised for anyway. Where is the incentive for AIB to deal with this issue in a proper fashion?

We will probably see in the first quarter what loans are restructured and we will hear on the grapevine about what is happening, but if this does not work will the Minister move speedily to set up an independent body, over and above the Central Bank, the banks and the mortgage holder, that can impose a settlement? Will he consider that option to deal with this issue once and for all?

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