Micheál Martin (Cork South Central, Fianna Fail) | Oireachtas source

The mortgage arrears crisis shows no sign of abating. We heard at the weekend about significant disagreements between the Financial Regulator and the banks regarding the content of a sustainable resolution package for mortgage arrears and the pace of progress being made by the banks. The economic impact of the mortgage arrears crisis is severe. It is hammering consumer confidence and undermining the prospect of a recovery in the domestic economy. More than 95,000 people are now in arrears of more than 90 days. The Government's decision to amend the code of conduct places a substantial number - more than half - of these individuals in a serious situation in respect of the banks and the approaches they may make. There are genuine fears about an impending wave of family home repossessions. People are very worried.

Banks were supposed to have already achieved a 20% target of providing sustainable solutions to people in mortgage arrears. I ask the Taoiseach to update me on the extent to which that target, which was due to be reached in June, was met. They are supposed to reach a target of 50% by the end of this year. My party tabled a motion for constructive debate this evening. We are calling on the Government to amend substantially the code of conduct to give greater protection to those who are in arrears by, for example, establishing a clear definition of what constitutes an unsustainable mortgage, ensuring a minimum protected level of income for people in arrears and reinstating the 12 month moratorium on commencing repossession proceedings. We would ensure that banks record all calls made with those who are borrowing from them lest there be any accusation of aggressive or unacceptable behaviour. We would oblige a bank seeking an order for repossession to first obtain written confirmation from the Central Bank that it has exhausted every other course of action available to it to keep the family in its home.

Does the Taoiseach not accept that it is now time for the Government to intervene directly to offer protection to those in mortgage arrears? Can he outline to us the nature of the disagreement between the Financial Regulator and the banks and outline what he believes a sustainable resolution would comprise?

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