Michael Noonan (Limerick City, Fine Gael) | Oireachtas source

I do not disagree with the Deputy's analysis. At the start of a process of this nature, it is helpful if the various financial institutions try out different approaches. Some of these approaches work in theory, but they do not work in practice. One must see them operating in practice. It is the function of the Central Bank to ensure the consistency to which the Deputy refers. It is effective in that regard. We are all aware that the start of this process was disappointingly slow. However, it is now moving well and is on track. A total of 51,000 permanent restructures have been offered to date and it is obvious that significant progress is being made.

In the context of the overall position, the problem is not quite as large as some might imagine. A director of AIB recently informed me that the average amount of arrears in respect of the institution's 35,000 mortgages in arrears was €13,000. Average arrears of €13,000 do not constitute an insurmountable obstacle, particularly as the economy recovers and people return to work. If one was to add two years to the term of a mortgage, one could cover the level of arrears to which I refer. I accept, however, that different solutions must be found and that the various banks are taking different approaches. We must give them the freedom to do this, while also pressing them to meet their targets. If the approach being taken by a particular institution is working, the Central Bank should ensure it is adopted by other institutions across the system.

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