Michael Moynihan (Cork North West, Fianna Fail) | Oireachtas source

I commend Deputy Michael McGrath on his timely motion. I have a couple of issues to raise. Let me pick up on Deputy John Browne's point on reckless lending. I dealt with a case recently in which a man in his early 50s received a mortgage of in excess of €200,000 although his only source of income was an invalidity pension. That demonstrates the level of crazy lending by the banks. This is an issue to be considered.

Let us consider the issue of negotiations with the banks at stressful times of the year, particularly when children are going back to school. A family I have been dealing with had in its current account approximately €2,000, which was saved during the year to meet the cost of sending children back to school. The car insurance premium and motor tax had to be paid. When the family sent its documentation to the bank, the bank was looking for the €2,000 it had saved. Would the family be classified as a strategic defaulter? Are the banks talking about people who cannot meet their mortgage repayments in any way but who are trying to make provision for their families as they enter an expensive period of the year? The individuals concerned are making sure they are giving what they can towards their children's education, for example. Over the next few years, when people in trouble with their mortgages encounter very expensive times, such as when children are going to college, they will not have a hope. This must be realised.

Deputy John Browne referred to ensuring that mortgage repayments could be spread out over several generations. In years gone by, a provision was made whereby several generations could repay the moneys owed on transferred land, including Land Commission land. When land was passed from parent to child, repayment conditions were enclosed in the transfer documentation. Something of this nature needs to be done. We have seen evidence that there has been no full audit of what is actually taking place with regard to the mortgage crisis in the major pillar banks.

Something needs to be done in that regard. Evidence suggests that there is no full audit of what is going on in the major pillar banks in terms of the mortgage crisis. There is no audit which shows the true figures. We also do not know the truth about the deals being done and whether the banks are really making a serious dent in what is an enormous problem.

A huge number of families are in arrears and Deputies are meeting them every day of the week. Such families are under frightening and appalling stress trying to deal with this problem. It affects children, parents and grandparents. Deputies will all have heard stories about the repossession of vehicles, of threatened repossessions, threatening letters and so forth. Some people cannot see any way out of their difficulties, which has led to people taking drastic action.

I take issue with the use of the term "strategic default". I would love to challenge the banks on that. As I said earlier, in many cases people are putting aside some money to provide for their children returning to school or other expensive times of the year, like first communion, confirmation, Christmas and so forth.

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