Maureen O'Sullivan (Dublin Central, Independent) | Oireachtas source

I wish to share time with Deputies Finian McGrath, Catherine Murphy, Luke 'Ming' Flanagan, Seamus Healy and Mattie McGrath.

Tá fhios agam go raibh an ábhar seo a phlé an seactain seo caite ach tá sé tabhacthacht go bhfuil sé á phlé againn anocht agus ba mhaith liom aitheantas a thabharirt faoi Deputy Collins de réir an obair a dhéan sí i gcómhair an Bille.

I read over material I had gathered on mortgages and was struck by the important principles put together by the various researchers and groups campaigning on mortgage issues. The people concerned have a strong track record on anti-poverty issues, including debt, credit and housing. The first principle to accept is that there is an inability to pay rather than an unwillingness to do so, which means that there is a need for a multidimensional response. We are all flawed human beings and human nature being what it is, some people will choose not to pay, not because they cannot but because they will not. That leads me to the second principle - the need for data. All policy initiatives must be undertaken consistent with reliable and accurate data, some of which have been missing. The solutions must take all debt liabilities into account, otherwise they will not be workable. Debt write-off does not sit easily with some people, but if mortgage holders have been paying honestly and trying to do their best, the point can be reached where the practical and common-sense approach is to write off the debt.

Another principle is that debtors need adequate representation in negotiations and that the cost should not be prohibitive. People also need to have a minimum income. They must be able to meet their basic needs while repaying their debt. The aim should be to keep them in their homes, whether as an ongoing mortgage holder or as a tenant. When we discussed this issue two weeks ago, the Fianna Fáil motion referred to keeping people in their homes and stated that where repossession occurred, appropriate social housing and social welfare rights should be provided. It further stated the mortgage arrears crisis represented the greatest social challenge facing the State. I disagree because we must examine housing generally. In the area I represent there is a dire shortage of housing, whether it is social housing, private rented accommodation or local authority housing. This issue must be also included, with mortgage distress, when the housing crisis is considered. Everything must be done to ensure people remain in their homes and that they are not added to lengthy housing waiting lists.

The other principle is that the personal insolvency process should be adequately transparent. The Bill is trying to address provisions not adequately covered in a PIA. There is a specific proposal for a mortgage debt arrangement which would be added to the provisions in the Personal Insolvency Act 2012. It tries to regulate the relationship between the debtor, the bank and the PIP. The legislation addresses the issue of a reasonable standard of living and acknowledges that families need discretionary spending. They spend the most and if we can get them spending again, that will be a boost to the economy. If the measures brought forward to date were working, we would see the results in the statistics, but we are seeing the opposite. More than 97,000 mortgages, with a total value of €18.6 billion, are in arrears for more than 90 days.

This legislation tries to ensure owner-occupiers are protected. People have genuine fears that the Personal Insolvency Act 2012 was designed for business people and those with multiple properties, but the rationale behind this Bill is that it will force the banks to deal with homeowner debt. It is terrible that it is assumed that all those in mortgage distress are strategic defaulters. That is a serious mistake, but it is determining the policies being introduced. The Government has bailed out the banks at enormous expense and they have to play their part through genuine realistic engagement with those in distress. This legislation might force them to do that and deal with homeowners. As we debate parliamentary democracy with the Seanad referendum approaching on Friday, it would be useful if it was accepted that there was wisdom and an insight on all sides of the House and that it was not confined to the Government benches. The Government might just acknowledge that there was such wisdom and an insight in the case of this Bill.

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