Enda Kenny (Mayo, Fine Gael) | Oireachtas source

Yes, of course. As Deputy Martin knows, they have many facilities for doing so. The hospital groupings and the acceptance of the Haddington Road agreement are important.

I put it to Deputy Adams that I hope the document, A Vision for Change, can be implemented, and the appointment and approval of the professional people who know what they are talking about will be an important element of this as well.

The Dunne judgment left a lacuna in the law. This has now been addressed under the Land and Conveyancing Law Reform Bill 2013. What does that do? It merely restores the position that applied before 2009. Deputy Martin was a member of the Government at the time and the previous Governments which dealt with that. There is a genuine interest not only in having the banks engage with mortgage holders and persons in distress but in working out solutions that are sustainable and that will allow those people to get out of the difficulties they have been in. That does not mean applying interest-only arrangements, because the principal is never reduced in those cases.

It comes back again. The answer is an improvement in the economic condition of the country. That is why the Minister for Finance was very active during the EU Presidency in working out the progress towards a banking union. Jobs are the answer to confidence and to growth in the economy. That is why where the Government can act, it will act to provide opportunities for employers to have access to credit, for banks and lenders to meet their targets as set out by the Central Bank, and to ensure we avail of every facility at home and abroad to inject stimulus into the economy to provide opportunities for jobs, growth and economic development. That brings confidence in itself and it also means those in mortgage distress can see things beginning to improve and, one hopes, get into a more sustainable position.

I believe I have given Deputy Martin these figures before. At the end of March this year, a total of 79,689 principal dwelling house mortgage accounts were categorised as having been restructured. That meant bank officials engaging with all those people. Some 53% of that cohort were not in arrears at the end of the first quarter. As a percentage of the total stock in arrears, both early arrears or 90 days plus, a total of 26% or 37,454 were classified as restructured. New data collected this quarter indicate that 76% of those with restructured principal dwelling house accounts were deemed to be meeting the terms of their arrangement. That would have meant bank personnel discussing the situation directly with those people and what they could do to work out a solution with the customers to allow them to get on with their lives and, at the same time, to be able to meet the requirements under the mortgage over an extended period or by different circumstances.

Last month, the Government noted the publication by the Central Bank of the code of conduct on mortgage arrears, to which Deputy Martin referred. The code provides protection to consumers in mortgage difficulties. It specifies the concrete actions lenders must take in their fair treatment of customers and to deal with their arrears as part of a resolution. For example, to provide a practical roadmap for borrowers in distress, the code ensures that, at a minimum, eight months will have passed between arrears arising and any legal action that may be taken on repossession. Of course, a longer period is allowed if it is necessary to complete the mortgage arrears resolution process, MARP. For the first time, lenders are obliged to give three months notice before they are allowed to commence any legal action on crisis arrears cases, and they can only take this course if they have exhausted all other options. The revised code requires both lender and borrower to engage in activities during the vital first 12 months of mortgage arrears to facilitate the process rather than allowing it to deteriorate to the point where it is unworkable, as has happened in the past.

The Government is keen for borrowers in difficulties to fully engage. Independent research by the Central Bank shows that more than 70% of borrowers who undertook MARP were broadly positive. The code of conduct is focused on ensuring early engagement with customers to prevent the problem getting out of control. Tools are now in place and there is a broad framework of support to help borrowers towards a sustainable solution of their mortgage difficulties. I hope the targets set for the end of June and which increase in number for the end of the year will be realised by the banks. It is not simply a case of making a contract and suggesting it has been dealt with. Who would wish to see 100,000 families locked out, in limbo economically or excluded as whatever progress we can make as a Government passes them by? Clearly, there is an onus for direct engagement. Naturally, there is a difference between those who cannot pay and those who will not pay. This is why so many measures have been put in place for persons who find themselves in those difficulties. I hope it works. The Economic Management Council and the Cabinet committee dealing with mortgage arrears and credit availability will engage on a systematic basis with the banks to assess how they are measuring up to the conditions and targets set for them by the Central Bank.

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