Eamon Gilmore (Dún Laoghaire, Labour) | Oireachtas source

I acknowledge there is a problem with people who have been in arrears for a very long time. It obviously follows that the longer it takes to resolve those arrears problems, the more they are to go into arrears. These are people who are now suffering the legacy that Deputy Kelleher and his colleagues left to them. We need to get sustainable solutions for those people who are in arrears. It will be done over a period of time on a case-by-case basis.

There is progress on the arrears. There have been 45,177 permanent mortgage restructures up to the end of September. The total number of mortgage accounts in arrears has fallen by 2,316. The number of mortgage accounts in arrears of 90 days or more has also fallen by 1,468. It has to be worked through. The strategy we have in place is one where the Central Bank has set targets for all of the banks and lending institutions to work with people in mortgage arrears. They will now be working within a legislative framework that strengthens the hand of the borrower. The introduction of the insolvency service and the new legislation reducing the period of time for bankruptcy from 12 years to three dramatically changes the balance between the borrower and the lender.

These will need to be worked out on a case-by-case basis. It will be a gradual process. Clearly, those in longer-term arrears are in a more difficult situation. Clearly, it will require a greater degree of effort and engagement for those arrears problems to be resolved. However, we are making progress on it. We want to see further progress made. I agree with the Deputy that the solution for anybody in mortgage distress is not to get a threatening letter.

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