John Browne (Wexford, Fianna Fail) | Oireachtas source

I compliment Deputy Michael McGrath on putting forward the motion, which gives us an opportunity to address this serious problem. I hope the Minister will take on board some of the suggestions put forward by Deputy McGrath. As Deputy Moynihan said, no political party has a monopoly on how to solve this problem, which is not an easy one to solve. We must put our heads together to ensure we come up with a solution for the people who are suffering greatly due to mortgage arrears.

The mortgage resolution Bill, which was published this week by our party and which proposes the setting up of an independent mortgage resolution office under the Insolvency Service of Ireland with the authority to provide for actual settlements, is the way forward. An independent body is the only solution to this problem. Banks have been talking the talk over recent years but they are certainly not walking the walk. As many Deputies noted, significant numbers of people are coming to our clinics asking us for a solution to the problem. In many cases, we have gone to the banks with the people involved to try to hammer out a deal or solution, but this has not happened. The personnel in local banks do not have the experience to deal with families' mortgage problems. I have gone with people to the banks. They will give one a hearing but nine times out of ten, they will say they have to refer the package to Dublin to see what they think of it there. Nobody knows more about families' problems than the local bank personnel but they not allowed to make any decisions. All decisions are made in Dublin and more often than not, the solutions put forward are not acceptable there.

Every day, families are very concerned about arrears. I compliment the money advice and budgeting service, MABS, which has done a tremendous job in every county trying to help families come to terms with their financial difficulties. MABS personnel will tell one that once the families involved go through the income they have, more often than not, there is no money left to pay the mortgage and certainly no money left to pay the full mortgage the banks are looking for. The fact that too many people have lost their jobs or have reduced wages and the extra charges being placed upon them makes it very difficult for people to meet any part of their mortgages.

Deputy Moynihan alluded to the fact that many people received mortgages they would never be able to pay back. It baffles me how bank managers approved such loans. People have contacted me who have monthly mortgage repayments of €1,200 to €1,300 and I find that they are on invalidity or disability pension or a low income. How the banks ever gave them loans is beyond reason. It is an area at which the Minister should look because the banks should be held to account for granting these loans.

I know some families in my own area in Wexford have handed back their houses to their banks. In many cases, they feel it is the solution. However, it is not the solution because when the bank sells the house, the balance left over is then targeted back at the family involved. People should realise that even when they hand back the home, if the bank sells it at a reduced rate, the arrears left will accumulate and they will find themselves in a very difficult position in trying to meet them.

I ask the Minister to look at the suggestions in the Bill announced this week and the suggestions put forward by Deputy Michael McGrath about split mortgages, interest-only payments up to four years, extending the period of the mortgage by 20 years and a repayment holiday for 12 months. These are some of the suggestions that have been put forward. It is hoped the Minister can take on board some of the suggestions from this and all sides of the House because, as I said at the beginning, we are all in this together to try to come up with a solution. No one has a monopoly on wisdom regarding how to solve it but we must make an effort to deal with it quickly.

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