Jim Daly (Cork South West, Fine Gael) | Oireachtas source

This Bill is not about assisting banks to repossess family homes. It is about rectifying a flaw identified in current legislation that prevents banks exercising their full right to recall security pledged by the borrower in the event of default beyond sustainable solutions. Investment properties will and should be repossessed by banks. Developers are pocketing cash from rent in many cases. That is taking cash directly from the pockets of the taxpayer.

Some of the arguments against this measure miss the key point. The flaw identified does not protect family homes from being repossessed. That element is protected under the Code of Conduct for Mortgage Arrears. We cannot rely on a flaw in legislation to do that and to suggest otherwise is disingenuous. Further protection is offered by the personal insolvency legislation.

This issue requires leadership from politicians and not some fairy tale sympathy. Some of the reports at the weekend from a certain Ard-Fheis were regrettable in that people tried to make a political football out of this issue. They frightened home owners by saying the Government through this legislation was pushing the banks to remove people from their family homes.

I regret that people have chosen to play politics with this, which indicates further spin coming from some - not all - quarters on these very sensitive issues. It is easy to play on the vulnerabilities of people under financial pressure. It is akin to the argument that there should be an independent office to judge who should repay money to the banks. Having such an office - I have referred to it as An Bord Pleanála-style office - where somebody independently adjudicates whether Deputy Jim Daly should repay money to the bank would not only undermine the banking system, but it would bring it to a halt as no commercial bank would lend into the real economy. We all agree the banks must lend into the real economy. They would not lend into the real economy if an independent-style office, outside everybody else's control, adjudicates on whether people should pay back.

The Bill is another step in restoring the property market. It needs to hit the floor and we need to get to the real value of properties as they are. Anything that falsely prevents that from happening is a hindrance to the recovery of the country. I wholeheartedly support the legislation and look forward to its implementation.

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