Enda Kenny (Mayo, Fine Gael) | Oireachtas source

A sustainable resolution is to arrive at a situation whereby a person currently in mortgage distress or arrears enters an agreement with the lender that the person in that situation can be sustainable, in other words, can meet the requirements over a period in a different set of circumstances. Deputy Martin raised two issues, the arrears and the progress being made by the banks on the restructuring of mortgages. He says it is time for the Government to get involved but we have been involved for quite some time. If there had been involvement previously we certainly would not have the mess we are now dealing with. All of the tools are now in place to allow for the accelerated working out of mortgage arrears.

Banks and borrowers are now required to use these tools to reach a fair, sustainable and affordable solution to mortgage arrears. The Deputy and I both know the pressure this causes for people everywhere around the country. There is no doubt that over the last number of years there has been insufficient activity. That is why the Central Bank announced its new targets. These targets will be strictly monitored and enforced so that banks can reach sustainable solutions for families in mortgage arrears. The Governor, Prof. Honohan, set out the conditions and he expects to see recommendations from banks against the performance on the targets that have been set. If the Central Bank requires further powers, the Government will always be available to deal with that.

As of the end of March, 79,689 mortgage accounts were categorised as restructured, of which 53% were not in arrears at the end of quarter one. Of the percentage of the total stock in arrears, both early and 90 days plus, 37,454 or 26% were classified as restructured. This does not mean that 47% have fallen back into arrears because restructured accounts in arrears include accounts that were in arrears prior to restructuring, where the balance in arrears had not been eliminated, as well as accounts that are in arrears under the current restructuring arrangement.

The public targets have a number of elements. Quarterly targets have been set in respect of the number of sustainable solutions proposed to customers. The application of the targets commenced at the end of quarter two of 2013 and are being enhanced in subsequent quarters, with 2014 targets to be set in due course. It is expected that 50% of mortgage holders will have their restructured proposals dealt with by the end of this year and the remainder in 2014. Progressively more demanding quarterly targets will be set for the conclusion of the sustainable solutions.

I want to be clear with the Deputy that no targets are being set for repossession of homes. That has to be the last resort and the conditions state that clearly. These targets are deliberately demanding and they are designed to ensure that the vast majority of families in this country will be offered solutions that do not involve house repossessions. We all know how important that is.

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