Enda Kenny (Mayo, Fine Gael) | Oireachtas source

Nobody likes to see houses being repossessed but it is not realistic to suggest that there will not be some repossessions. I do not accept the Deputy's assertion that repossessions have become the norm or that repossessions are a fundamental part of Government policy. They are not. We have made that perfectly clear on so many occasions.

As the Deputy is aware, I think much to his consternation, we have rebalanced the rights of borrowers and lenders with the personal insolvency legislation, the most radical shake-up in a century. Despite the comments he has made on numerous occasions about the banks holding the veto here, the first number of the decisions are very clear and speak for themselves. As was announced today, and as has been repeated on many occasions, the first requirement is for borrowers to engage with the banks. It is not a sustainable solution to send out a letter going down the legal route. The fact that many cases, as the Deputy mentioned, are heading down the legal route does not mean automatic or eventual repossession. Nor do I accept, as the Deputy seems to have accepted, the figures put forward by Fitch that 20,000 repossessions will take place. We cannot allow a situation where the economic recovery will bypass those families who have had mortgage problems. As the Deputy will be aware in budget 2012 mortgage interest relief of 30% for first-time buyers was introduced. That was for those who bought there homes between 2004 and 2008 and that eased the cost for 270,000 householders. As the Deputy will also be aware, and this is another thing that is being done, the Department of Finance now produces monthly data and the data for October show a slight decline in the overall number of people falling into arrears. Engagement between consumers and lenders has led to 49,032 permanent mortgage restructures settled and dealt with and the people are able to meet those requirements. That is an increase of 3,855 accounts. The number of mortgages in arrears of greater than 90 days has fallen from 81,156 to 80,854, a small reduction but the number is continuing to fall.

The Central Bank has set clear targets and is monitoring them. Lenders are required to offer distressed borrowers sustainable solutions by the end of next year. The success of the banks in meeting these targets is measured by the Central Bank and by its residential mortgage arrears and repossession statistics and quarter three figures which will be produced in the next short period. The key point is to define and arrive at a solution, therefore, the first requirement is engagement between the borrower and lender. The first requirement is to find a solution. The Deputy seems to accept a figure in the newspapers today produced by Fitch. He seems to assume it is suddenly Government policy that it is the norm that repossessions take place when that is palpably not the case. He should not be putting out all those scares as we come towards the end of this parliamentary session.

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