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

I thank the Deputy for his question. There is no doubt that one of the harshest and dire consequences of the economic collapse from 2008 to 2011 was the indebtedness of many of our fellow citizens, particularly couples who could not afford to pay their mortgages. The Government has addressed this issue with the very strong assistance of the Central Bank. There has been agreement across the House on the approach where the Central Bank set quarterly targets to resolve the issue of impaired mortgages and these are being met. In round terms, sustainable solutions have been put in place for 54,000 households which cannot cope with their mortgage arrears. That is significant progress and I hope progress will continue. That is why I am so pleased that the Joint Committee on Finance, Public Expenditure and Reform has called in all of the main lenders this week and is putting them through their paces. Representatives of Ulster Bank came in yesterday. Representatives of permanent tsb are in this morning. I understand it states it has offered new arrangements to 60% of its mortgage holders and it seems to be leading in exceeding targets. It is very important that they are met. We will continue to drive them and I know the committee will pressurise the lending institutions to ensure they keep to them.

The other side of indebtedness is the buy-to-let sector, in which the banks have made significant progress. Bank of Ireland claims to have offered solutions to 90% of its buy-to-let customers, while AIB claims it has offered solutions to 65%. It is one of the big problems impinging on couples’ personal lives, many of whom are young. It is a difficult issue and a drag and an inhibition on the economy because people coping with so much personal debt are not fully participating in it. We must continue to drive forward. There is a range of solutions. It is not pot luck. The Central Bank has set down a protocol, set the targets and agreed the range of acceptable solutions. There is a standardisation of approach across the banks. Within the range of options available to the lenders, one bank moves more strongly in one direction than another. There are variations within an agreed scheme. I acknowledge the seriousness of the issue, but steady progress is being made and with everybody’s help, we continue to drive forward.

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