Billy Kelleher (Cork North Central, Fianna Fail) | Oireachtas source

I am trying to make the point that nobody saw this particular difficulty coming. Does the Ceann Comhairle believe that any political party in this House would have allowed circumstances in which people must live with unsustainable mortgages? We are coming forward with very genuine proposals, proposals we believe are important in ensuring independent oversight. We must remove the veto of the banks.

The Minister of State may interpret the legislation and guidelines any way he likes with regard to personal insolvency but the fact of the matter is that it is the lenders, the banks, that will have the final say on the resolution mechanism for people with distressed mortgages. For the Minister for Justice and Equality to dismiss in the House last night any proposal to address the problem is disingenuous to say the very least, or arrogant to say the very most. We are trying to highlight the difficulties of families and point out that the banks cannot be seen as independent in addressing this issue. They were the bodies which, at the outset, increased lending in the system by assessing disposable income, including child benefit and revenue from property letting. The Government is now asking the institutions to be adjudicators in cases where there are distressed mortgages and where there are families liable to lose their homes.

Deputy Michael McGrath's proposal is very simple. It is about ensuring that there is independence in adjudication and that there is a system in place that ensures families are given an opportunity to make a settlement and get on with their lives. Nothing in the proposals on personal insolvency removes the simple fact that the bank is the ultimate decision-maker.

Why has the Government not been pushing for mortgage resolution as speedily as we expected? It made considerable commitments in this regard. I am concerned that if the Government knows there is to be a mortgage resolution mechanism that is fair, equitable and independent, banks may need further capital.

The Government knows this politically because it stated previously that any further injection of capital into the banks would be viewed negatively by the public. The Government has stated in the past that not another cent would go into the banks, but they may need further capital. What is known for sure is that the banks will not address this issue in a way that is fair because doing so could expose their capital base. I have major concerns about this. For this reason we need an independent system to address the 94,000 mortgages under duress and the families supporting them. The system must be independent because the banks cannot be trusted in this particular aspect of their affairs. They have proven this previously in terms of how they assess a person's ability to pay and all that flows that that.

Proposals put forward from this side of the House are a genuine effort to try to resolve this issue. As stated by every Deputy who has contributed to this debate, this is a massive societal issue. It has a hugely damaging impact on society at large and on individuals and their families. Deputy Neville spoke about suicide, mental illness and all that flows from that. Our proposals are solid and are put forward in a genuine effort to address this issue. I will not sit in this House night after night and take a historical lecture from the Minister, Deputy Shatter, when he, given his involvement in property, did not see this coming either. That is on the record and is not a personal slight. People are saying that Fianna Fáil saw this coming but chose not to do anything about it. Time and again, I have called in this Chamber for an honest debate on how we got where we are.

The Government amendment states that it inherited a severe mortgage arrears crisis. We acknowledge that. It would be no harm if the Government members also acknowledged that when on this side of the House they did nothing for 14 years to raise this particular issue. Not once was there any discussion about attempting to deflate the property bubble that was developing. Not once in this Chamber did any Deputy criticise the then Government or put forward proposals. The contrary was the case on every occasion. The clarion calls from Government members when on this side of the House were for the Government to abolish stamp duty and open up the banks to further lending.

What we are trying to do is to address a problem that is destroying society and families. One has only to go to Dunshaughlin, Stamullen or any of the other commuter belt areas to see the pain and devastation this problem is causing homeowners. I do not believe any party would have tried to cover up this issue and pretend that the property bubble would never burst. If I or any member of the previous Government now on this side of the House had known that the property bubble was going to burst we would have cried halt. Any time we tried to do so we were accused of interfering. There were calls from those who are now members of the Government, when they were on this side of the House, for the abolition of stamp duty and the introduction of further tax reliefs. They are now saying the opposite.

Honesty is important. The families who are listening, or are not listening, tonight want solutions. I urge the Government, even at this late stage, to establish an independent appeals mechanism and remove the veto from the banks, which are the ones with vested interests in terms of adjudicating on a person's ability to pay. The draft guidelines published in the Sunday Business Postare disturbing. Under these guidelines, families may be forced to give up private health insurance. Private health insurance is now considered a luxury, as is being in employment. The Government needs to get involved in the real world. I urge the Government, at this late stage, to accept Deputy Michael McGrath's proposal that independent oversight be sacrosanct and the central tenet in any attempt to address the issue of mortgage arrears, which is a huge and damaging problem for families and society. I commend Deputy McGrath's motion to the House.

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