Richard Bruton (Dublin North Central, Fine Gael) | Oireachtas source

In order to write down the value of mortgages on that scale, as these are losses that are not provided for, someone would have to provide capital for the banks to do that. This could run to many billions and, indeed, probably €40 billion or €50 billion would have to be provided in additional capital to do that. The taxpayer has already put €64 billion into the banks and is not in a position to provide additional capital to achieve the sort of write-down the Deputy desires.

Clearly, each case has to be dealt with in a sensitive way and the Government has provided a framework within which that can be dealt with. It has also provided the personal insolvency arrangement whereby people can have a work-out over six years to deal with the problem and come away after the six years with an affordable mortgage while remaining in their home.

On the issue of mortgage to rent, the Government has introduced the option of mortgage to rent in certain social housing cases. There is some take-up on that and I know applications are continuing under that scheme

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