Seán Kyne (Galway West, Fine Gael) | Oireachtas source

It is important, as the Minister said, to continue to discuss this important issue, which affects so many of our citizens. I commend Deputy Collins on her work on this Bill. From my limited experience, producing a Bill is no easy task. It requires a great deal of time for research, drafting and re-drafting as well as communication and consultation with the Bills Office. It is not easy to find that time. The upcoming reforms to this House, including additional Friday sittings, should be extended to include provision for additional supports for those producing Bills, whether they are in government or opposition. Ministers have the immense benefit of support staff for such work. That would increase participation in the legislative process.

Deputy Collins's Bill clearly seeks to make use of the provisions contained in the Personal Insolvency Act 2012. The Act was introduced to reform our bankruptcy laws which had become obsolete and were of no benefit to most citizens. The Act came about a decade too late and one can only speculate as to the positive effect it might have had if it had been in place prior to the economic crisis. This Bill seeks to apply the Act's provisions to the issue of mortgage arrears. Mortgage arrears and the high level of personal debt are factors that set this current recession apart from previous ones. Mortgage difficulties can be all-encompassing, detrimentally affecting a person's everyday life. I agree with the intention of the Bill, which is to remove or reduce the burden on indebted citizens.

Just as mortgage arrears take time to accumulate, it also takes time to design and implement solutions. The Government has taken a number of significant steps including, primarily, the Personal Insolvency Act but also setting targets for the banks to address cases more speedily while respecting the measures contained in the Code of Conduct on Mortgage Arrears. The mortgage advisory service with its advice telephone line and comprehensive website is rooted very much in the need to be informed.

Borrowers in distress can access information which will help begin the process of resolving difficulties. As with many problems, early action and intervention is crucial to creating sustainable, workable solutions.

It also appears that the Bill seeks to allow for the forced restructuring of secured mortgage debt and the effective writing-off of part of that debt. Under this scheme a person with a mortgage debt would be able to enter into a mortgage restructuring arrangement created by a personal insolvency practitioner which would then be binding. I have concerns about such an arrangement, as any situation which is grounded in compulsory action would be cause for concern as it goes against the principle which has been observed until now, namely, the aim of finding a solution through honest communication, co­operation and consensus.

Imposing a solution which effectively writes off mortgage debt has negative consequences, first, for the creditor, which may or may not be a financial institution, and second, for the taxpayer. The taxpayers' stake in Irish financial institutions is still at a level that would necessitate further public funds on account of the losses which this legislation would precipitate. Further public money for the banks is something which nobody would wish to see.

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