Micheál Martin (Cork South Central, Fianna Fail) | Oireachtas source

In his address on Sunday night, the Taoiseach stated that the banks must do more to deal with mortgage distress. It was probably the understatement of the year, particularly given that one in five residential mortgages remain in arrears. The figures are quite dramatic. It is as if the Government is on the sidelines and is helpless in refereeing a match over which it has no control. Under the Land and Conveyancing Law Reform Act 2013 which the Government introduced, repossessions are becoming the norm and are the acceptable option for banks to pursue those in arrears. It seems this is with Government acquiescence. The Government put the banks in the driving seat. As Members will be aware from presentations to the Joint Committee on Finance, Public Expenditure and Reform, AIB, Bank of Ireland and Ulster Bank between them sent out approximately 13,000 letters initiating repossession proceedings.

There has been a dramatic increase in the number of court proceedings issued during quarter three over quarter two of 2013. The increase is about 570% with the number issued during quarter three being well over 1,800 compared to 270 in quarter two of this year. The Fitch report estimates that about 20% of residential mortgages that are in arrears will end up being repossessed - that is 20,000 homes that will be repossessed. The tables in the report detailing court proceedings and so on show that the problem is escalating and accelerating in terms of the numbers.

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