Finian McGrath (Dublin North Central, Independent) | Oireachtas source

I am sharing time with Deputy Mattie McGrath from Tipperary.

I thank the Ceann Comhairle for the opportunity to speak on this Bill. I welcome the debate as it is very relevant to what has happened, is happening and will happen in this country and to how we will get out of this economic mess. The Bill aims to promote more responsible borrowing and lending. The key word is "responsible" as many of us were not reckless during the boom and are fed up to the teeth taking the hit for those people who were simply greedy or grossly irresponsible. The senior bankers, developers and regulators who allowed the problem to occur are an absolute disgrace. This should be always said because many innocent people are caught in the crossfire, and they should never have to pay the cost. Most people are very angry about this and most people are suffering financially every day.

Today we see results coming in for the Meath East by-election. They represent a wake-up call in that 62% of people did not bother to vote. There is a considerable disconnect between many people and the political system. I feel very strongly that these people should have voted. I do not blame the weather or time constraints. Everybody should vote and copping out should never be an option. However, we should consider compulsory voting in the future. Too many have died for the right to vote. When we are dealing with credit, mortgages and major hits to the pockets of people, not voting should never be an option. There is plenty of choice in the current political climate. Economics and politics are linked and if people do not see this when voting, they should stop moaning if they keep getting the policies that they dislike or with which they disagree. That is the bottom line. It appears that Ms Helen McEntee will win the seat in the by-election. I congratulate her and the Minister on this victory. I sympathise with the McEntee family on the difficult time it has experienced.

It is important that we focus on the legislation. I support the Bill because it is important. As I stated, it is about responsible borrowing and lending. The Bill establishes a statutory credit reporting system. It creates a central credit register, to be maintained and operated by the Central Bank. Information on credit applications and agreements, and parties thereto, will be held on the register. All lenders will be required to give the Central Bank information on credit applications and agreements. Incomplete or inaccurate information can be amended, and the information on the register will give an overall picture of indebtedness and lending in the State.

When talking about lending and responsible borrowing, it is important that we talk about the debt issue. I am from the old school and firmly believe that if people can pay back money owed, they should pay it back. I do not believe in the chancers and conmen who are using a financial and banking crisis, in addition to a mortgage crisis, to cop out. Doing so is grossly irresponsible. There are people ducking and diving when it comes to paying back debts. People should do their best to pay what they owe, regardless of what has happened. The reality on the ground is that there are 94,000 people with major mortgage problems. Most of the people who come to my office state they want to pay something back and that they want to make an effort to do so. These people should be contrasted with some of those people who destroyed the country, and their attitude should be contrasted with the greed that was evident. Most people want to make an effort. With the personal insolvency legislation coming down the track, I urge everybody to support strongly the 95% or 96% of people who want to make an effort but who just need flexibility and support to deal with their debts. We must ensure they receive a proper hearing in regard to holding on to the family home.

I am focusing on the 94,000 people whose repayments are in arrears for more than 90 days because they need our help. Many of them took a hit because they lost their jobs or had their salaries reduced, and now they find themselves in an economic crisis. Of course, there are big guns who are ducking and diving and who believe they will use the crisis as an opportunity not to pay any money back at all. The Minister should ensure that he differentiates between these two sets of people.

It is not all bad news. I know today that there was a return to growth in February in respect of mortgage approvals. The latest mortgage approvals report, published today, shows that 1,093 mortgages, to the value of €169 million, were approved by lenders in Ireland during February. This is up 30% on the equivalent figure for the month of January, which is good news. While the overall figures show a slight fall of 2.1% in mortgage approvals annually, approvals in the key category of house purchases, which accounted for the majority, or 90%, of all approvals, grew by 1.4% year on year. The number of approvals for remortgaging or top-up purposes has continued to decline annually. The value of house mortgages approved during February stood at €159 million. The lion's share pertains to the €169 million approved in total. The average mortgage for a house purchase, €160,695, was down 2.8% on the figure for the same time last year. These figures became available during the day. It is important that we focus on the 94,000 people who have experienced mortgage arrears for more than 90 days. Some 28,000 buy-to-let mortgages are in arrears for the same period.

We must accept the reality that a huge burden has been placed on many families who are struggling with their mortgages, particularly on foot of the cuts to the child benefit. We have heard the row on child care in the past 24 hours. There is a considerable crisis over child care costs payable by many young mothers and fathers. Many families are paying more than €1,000 per month for child care. We must not shaft them, nor must we cut child benefit. There have been PRSI increases and the home tax and other measures have been introduced. People are having a very difficult time. This is having an impact not only on the economy and family life but also on the mental health of many. We need to address the issues that are connected to the broader issue, particularly in regard to this legislation.

There is widespread concern about the threat of a significant increase in family home repossessions arising from the mortgage arrears resolution targets programme, the proposed changes to the code of conduct on mortgage arrears and the Government's plan to reverse the Dunne judgment. I urge the Government to examine sensible options. If somebody proposes a mortgage resolution office under the new insolvency service scheme, it should be considered. We should place greater emphasis on the implementation of long-term sustainable mortgage solutions, such as split mortgages, shared equity and permanent interest rate reductions.

Perhaps the Ministers who regularly complain that the Opposition does not propose solutions to the problem will consider those options. The people of whom we are speaking are our friends, neighbours and citizens of this State who deserve to be supported.

Section 5 provides that the Central Bank of Ireland will establish, maintain and operate a database of information containing personal and credit information. This database will be known as the central credit register. Although not explicitly stated in the Bill, this register will be owned by the bank, the maintenance of which can be outsourced by the bank to a third party. However, the Central Bank already has the power as part of its current functions to outsource the operation and maintenance of the register.

This Bill is similar to that published in 2012, which was based on the recommendations of the inter-agency working group on credit history. It creates a statutory centralised register of credit applications and agreements, which information will enable the Central Bank to form an overall picture of borrowings-debt and the amount being loaned out by banks and other creditors. Importantly, the Bill aims to balance the need for credit and debt information with the need to protect personal information. It is important that the person informational which can be held on the register is strictly defined and that timelines for the retention of different types of information are provided. It is not possible under this Bill to use borrowers' PPS numbers. The Minister will commence the section in this regard when the Central Bank can show that their use is necessary to ensure the effective operation of the register.

As I stated, the database will be owned by the Central Bank; there will be mandatory reporting of a comprehensive range of credit information by credit providers; credit providers will be required to meet specified reporting standards and to undertake mandatory credit checks of the register in respect of all credit applications above a threshold of €2,000. These are the nuts and bolts of the legislation. It would be wrong of any member of this House not we welcome this legislation which will act as a support to the financial services industry and ensure responsible lending and borrowing.

This Bill is about responsible lending and borrowing. It also addresses the deficiencies in the financial services sector through the establishment of a statutory credit reporting system. This is positive legislation. It is also a wake-up call to those directly responsible for the mishandling of our finances, which people held positions of power in financial institutions and statutory bodies, including Ministers. This Bill is important legislation which it is hoped will, in conjunction with the personal insolvency legislation, when enacted, assist in our efforts to get out of the economic mess we are in. Nobody in this House wants to see people suffer or without a decent income. Equally, we do not want people to have excessive incomes, including people in the media, financial services sector and so on. It must be acknowledged that people are hurting and that we as Members of the Oireachtas have a moral duty to support them.

I welcome this legislation and look forward to debating it further on Committee Stage.

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