Jan O'Sullivan (Limerick City, Labour) | Oireachtas source

It is a solution that allows people to stay in their own homes.

What Deputy Collins and others appear to be proposing is the provision to certain debtors of a capital asset at a low cost or, in some cases, no cost at all. There is the risk in the Deputy's Bill that a means of evading payment might be provided to debtors who may actually be able to meet their financial obligations. Our overall focus is on assisting people in genuine difficulty in remaining in their homes where possible. If reasonable offers are made, I expect they will be broadly accepted by customers. Should the borrower not be satisfied with a bank's proposal, or if no such proposal is forthcoming, the legal insolvency frameworks are now available to mortgage and other debtors. In addition, the reformed, more debtor-friendly bankruptcy process is available as the ultimate resolution to an unsustainable debt position.

Two basis principles underpin the Government's approach to the mortgage problem. First, co-operating mortgage holders experiencing real difficulty should, where possible, be assisted in remaining in their homes. Second, any framework for mortgage holders must distinguish between those who cannot afford to pay the mortgage on their primary homes and those who will not pay.

Providing a fresh start for people facing genuine difficulty in dealing with their mortgage commitments is necessary. The Government has provided a suite of measures. We all agree that the banks must offer proper solutions to debtors. I commend Deputy Collins for giving us the opportunity to discuss this issue.

See this speech in context