Michael McCarthy (Cork South West, Labour) | Oireachtas source

I welcome the fact that we are discussing this issue on the first day back from the recess. Nobody is under any illusion as to the scale of the crisis that has occurred, the extent of which is still being sorely felt throughout society, not least by those who are held over a barrel by the banks. I agree with the Minister when he pays tribute to all members of the finance committee who dealt with this issue during the recess, particularly those who questioned the heads of the banks in recent weeks.

I will not go into the historical analysis. We are all well aware of how and why it happened and why it should not have happened. We must acknowledge what has been done but we must also reflect on the exchanges between the CEOs of the banks and the members of the finance committee. Sending out legal letters threatening legal action is not a remedy or a proposal to constructively engage with people who are in debt. I acknowledge the creation of the Insolvency Service of Ireland and the guidelines from the Central Bank but the Governor of the Central Bank needs to bring those bankers in and knock heads together. They have caused mayhem and misery in most households in this country. They were bailed out by the Exchequer. They got away with blue murder and it is high time they were hauled over the coals. The attitude of some of them at the finance committee hearings was deplorable, sending out threatening letters and pretending that was a realistic engagement in terms of trying to restructure the debt.

Many people would qualify for insolvency and would have a comprehensive slate of advice available to them because of initiatives introduced by Government, but there is a significant cohort of people who are just about paying the mortgage and who have no money left for anything else. Although the arrears issue is very significant, we must widen the debate beyond arrears in terms of requiring the banks to enter into realistic and constructive arrangements with people. The solutions offered by the banks are inconsistent, for example the split mortgage. Some banks are not applying interest on the split portion, while others are. It is not being realistic to halve the mortgage and then lump interest on the other half. It is not even kicking the can down the road; it is kicking the can around the room. There must be uniformity in the banks' approaches. There must be a realistic rearrangement of some of the arrangements that people are involved in.

It has a wider dampening effect on the economy. If most of somebody's household income is going to a bank there is money left for little else. It is extremely frustrating for Members of the Oireachtas who deal with constituents who are in trouble with their banks. It is extremely difficult for the ordinary citizen to look at what has happened and balance it in terms of senior bankers who destroyed the economy and who still have not been brought before the courts of law. Meanwhile ordinary domestic households are doing their damnedest to stay alive and keep their heads above water with no meaningful dialogue with the banks.

I acknowledge what has been done, but there is a significant job of work to be done. Can we get the Governor of the Central bank to pull these people in, knock their heads together and work out sensible and constructive arrangements so we can get this country back to where it should be?

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