Eamon Gilmore (Dún Laoghaire, Labour) | Oireachtas source

As I understand it, the special liquidator has reached agreement with the phase 2 bidders for the IBRC mortgage book. The agreement provides that, if successful in acquiring the portfolio, the phase 2 bidders will ensure that the relevant acquired mortgage loans are serviced in accordance with the Central Bank's CCMA. The special liquidator appeared before the finance committee yesterday and explained its decision. I understand that it was aware of the anxieties of mortgage holders and had noted the concerns expressed in recent weeks by the Minister for Finance and other Members of the Oireachtas.

I welcome this positive announcement and remind the House that the Government has always been clear, in that we will ensure mortgage holders retain the protection of the CCMA. As previously stated, however, if it becomes evident that the voluntary application of the code is not delivering the requisite protection for mortgage holders in arrears, the Government will introduce the required legislation.

Looking beyond the IBRC loan book sale and as discussed by the finance committee, the Department of Finance, the Central Bank and the Attorney General's office are examining the applicability of the CCMA to unregulated firms and the need for legislation in that regard. We have continuously stated that we expect any purchaser of the IBRC mortgage portfolio to service it in accordance with the CCMA. This remains the position.

As the Deputy is aware, the sales process is being undertaken by the special liquidator as part of the liquidation process. It operates independently on its own legal basis, but the Government is clear in its desire to protect the interests of the mortgage holders. There have been two previous sales of loan books. In both cases, the purchasers agreed to the continued operation of the CCMA. In the current case, the two bidders have given an undertaken to follow suit. If they do not deliver on that undertaking, the Government will introduce whatever legislation is required.

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