Charlie McConalogue (Donegal North East, Fianna Fail) | Oireachtas source

I join my colleagues in supporting Deputy Michael McGrath’s motion to ask that the Government take account of its failure thus far to address the severe mortgage crisis. Deputy Michael McGrath outlined some actions for the Government to take with immediate effect in order to address the growing mortgage crisis.

A total of 142,000 family homes are in mortgage arrears. That is double the figure when the Government took office. That means that approximately 500,000 people are living under a roof where the mortgage is not being paid regularly and is in arrears. Many of the people who are struggling to pay their mortgage are at a stage in their lives where they are trying to raise a family and have the attendant bills and stresses that go with it. In the past week a Behaviour and Attitudes poll of people in the 25 to 49 year age group was published. That is the section of society which is most stretched and finds life most difficult in this country. A total of 33% were either unable or found it exceptionally difficult to pay their mortgage on a monthly basis. A total of 66% found it very difficult to get by day to day. They are also the people who have been impacted on most by the rising costs of raising a family and increased daily living expenses. In addition, they are impacted on by the increased cost of many of the measures the Government has introduced since it took office. In the past week it was revealed that inflation in the education sector was particularly high. In the past 12 months inflation in that sector increased by 5%. That is due to measures taken by the Government such as the €250 increase in the annual registration fee for third level students in September. That is on top of a similar increase last year and the Minister has indicated there will be a further increase next year. The same sector is affected by cuts to many payments such as the back-to-school allowance.

This is the biggest crisis facing many families. The motion tabled by Deputy McGrath asks the Government to take specific action to ensure this will be addressed with the authority that it deserves. The fact that the Central Bank has not carried out any audit of the types of offers that have been provided must be noted. We want results and not just targets pertaining to what will actually be delivered to families in arrears.

The whole country and many politicians were shocked by what occurred. Some members of the Government did not realise in advance of the deliberations of the finance committee last week that, in the vast majority of cases where offers were made, they constituted threatening letters to the households and persons in arrears. That is simply unacceptable and we need to see a change of approach.

We need a clear definition of a sustainable solution. It is not acceptable that it is left to the banks to implement solutions on a case-by-case basis, and that those in arrears cannot have the assurance that there is a guideline and direction given to the banks in terms of what constitutes a fair deal for them. We ask that the Minister take on board the details of the Private Members' Bill put forward by my party last year. It called for an independent mortgage resolution office that would offer backup to and an independent arbitrator for people in arrears when negotiating with their banks. I commend the motion to the House.

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