Heather Humphreys (Cavan-Monaghan, Fine Gael) | Oireachtas source

I welcome the opportunity to contribute to this debate on mortgage arrears, which is one of the most serious issues facing Ireland at present. Failure to address this problem will have severe consequences on our prospects of economic recovery.

I welcome the fact that, since taking office, the Government has put in place a series of measures to assist distressed home owners, which is in stark contrast to the approach of the previous Government, which did absolutely nothing to assist those in arrears. Indeed, it was the total inaction of Fianna Fáil while in government and its failure to regulate the banks that got us into the almighty mess we must deal with now. It is particularly galling that Fianna Fáil now has the audacity to criticise this Government, which is taking steps to address the problem.

As part of the 2012 budget, the Minister for Finance introduced a special rate of 30% mortgage interest relief to assist first-time buyers who bought their homes in the years 2004 to 2008. Over 270,000 home owners have benefited from its introduction. The mortgage to rent scheme and the provision of mortgage interest supplement by the Department of Social Protection are further measures to assist families in financial difficulty.

Ultimately, if the mortgage arrears problem is to be adequately addressed, the banks must engage with home owners experiencing difficulties with their repayments. In this respect, the recent publication by the Central Bank of specific targets for the six main banks, AIB, Bank of Ireland, Permanent TSB, ACC, KBC and Ulster Bank, to put in place sustainable mortgage solutions for borrowers is to be welcomed. By the end of June 2013, banks should have a sustainable solution for 20% of distressed borrowers that are more than 90 days in arrears and this will rise to 30% by September and 50% by the end of the year. These are ambitious targets with clear timeframes and the banks have been left in no doubt as to what they must do. However, it is a two way process and I encourage anybody in difficulties to engage with the bank and not to ignore a problem that will not go away. If people are in doubt or unsure what to do, they should contact the local MABS office, which will help them and give them good advice. I pay tribute to the great work MABS does in helping people in financial difficulties.

The Central Bank will be monitoring the banks closely and I am satisfied that we will have a much clearer and better picture by the end of this year. The mortgage arrears problem will not be solved overnight as there is no quick fix but the measures outlined are proof that this Government is taking serious action to address the issue and the recent scaremongering by the Opposition of mass repossessions is an example of the worst type of cynical politics I have seen during my time here. The objective here is not to put people out of their homes, but rather to put in place sustainable, achievable solutions for people that will allow those struggling with unmanageable debts to remain in their homes.

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