Mick Wallace (Wexford, Independent) | Oireachtas source

I wish to share time with Deputies Collins and Ross.

I also commend Deputy Collins for her introduction of this Bill. It is really important that this issue be kept on the agenda. If we say nothing, worse can happen. If people speak up and if the Government puts a bit more pressure on the financial institutions to behave differently, things could get better. All of the arguments have been made and we have gone around the houses on this issue for the best part of this Parliament's term. A number of points stand out. It is not rocket science and there is little doubt that the priorities of the banks are being given preference over those of the citizen. If that were not true, we would not have given billions to the banks without conditions. It would have been nice if the last Government had attached some conditions to the bank bailout. It would have been nice if the Government had said that it would bail out those failed financial institutions, which failed largely due to their own poor management and which should have been allowed to go broke, but only on condition that they then look after everyone else who is in trouble. Some might say that is very idealistic, but I do not think it is quite so mad.

I note that NAMA boasted last week that it got the full 60% back from a builder. The builder in question owed the State banks €1.5 billion. NAMA bought that debt at 60%, equating to approximately €950 million, and got its money back when it sold on the assets. That is fine, and I am sure the builder will trade again. However, there is actually more than €500 million missing, and that bill is being picked up by the taxpayer. But everything is grand - sure we are keeping businesses going. Small and medium-sized businesses in Ireland are in a very difficult place at the moment because, generally speaking, people have very little money in their pockets, and the mortgage crisis is playing a huge role in that regard. It is challenging for many people to pay their mortgages simply because the mortgages are too big.

More than 1 million people are left with €50 of spending money after they pay their bills each month. While the Government can claim we have economic growth with the green shoots of recovery emerging, living standards are continuing to drop with people finding it increasingly difficult to make ends meet. Mortgage debt is a significant factor in that.

It is okay to rescue the failed financial institutions to the tune of billions of euro. It is okay to help big businesses to overcome their problems because we need them to provide employment to get the economy going again. However, the Government seems to believe it does not need the ordinary citizen to be on a good footing. That is really important as we will never have a real recovery until it happens.

There is talk about moral hazard and that some will take advantage if they are helped out with mortgage repayments. Do those who do not need help realise they would be better off when those who need help are given it? We will all be better off when our society, domestic economy and living standards come around and recover from the doldrums.

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