Timmy Dooley (Clare, Fianna Fail) | Oireachtas source

What are struggling homeowners supposed to think when they hear these words from a Minister? How can they possibly believe the State is looking our for their best interests and how are they expected to place any faith in or avail of the mechanisms being put in place by the State to address this crisis? Often, the tone can be set by a Government comment or position, even though it may not be in a position to force a particular outcome. It is a little like being in opposition with a relatively small number of Deputies, in that one could take the attitude that because of the size of the Government's majority, one could walk away and let it do what it wishes. However, that is not the approach generally taken by Opposition parties. I want the Minister for Finance to do likewise and at least set out a Government viewpoint, instead of taking the view that it can do nothing about something. Often, a sentiment expressed can deliver a message in a way that is far greater than one's voting rights.

Statistics published by the Central Bank on 4 March indicated that, of the 764,000 mortgages on primary residences, approximately 136,500 were in arrears on 31 December 2013, with in excess of 96,000, some 12%, in arrears for more than 90 days. Almost 31,000 mortgages secured on buy-to-let properties were also in arrears more than 90 days, representing approximately 21% of all residential mortgage loans secured on buy-to-let properties. Of most concern is the number of accounts in arrears for more than 720 days, which increased by approximately 1,700 in the last quarter of 2013, pushing more homeowners closer to eventual repossession. These statistics are exacerbated by the mortgage restructuring arrangements agreed to by banks to date with distressed borrowers. They have largely been of a short-term nature, with almost half being interest-only or less than interest-only. Put simply, these problems have been temporarily brushed under the carpet.

In their evidence this week the financial institutions have claimed that the current phase of restructuring is not contemplating these temporary proposals but more sustainable solutions involving capital repayments, the extension of mortgages life cycles, etc. What is not clear is the capacity of borrowers to meet these commitments, given the effect of any slight increase in interest rates, individual shocks or, particularly on the buy-to-let side, a continuation of the current level of rental income. There is no doubt that, as the property sector starts to show some confidence again and the banks start to lend in the more traditional way, a greater number of housing units will appear on the market, which will affect rental returns. Although arrangements are being made, I am not aware of any exercise that has extrapolated how they will perform in the future. I accept that the banks are trying to get deals in place, but I am concerned about their long-term viability.

The crisis has entered a new phase, one of repossessions, untold misery and a complete abandonment by the State of its citizens in their hour of need. No amount of half-hearted measures or spinning of figures will distract struggling homeowners from their daily reality. The much-lauded personal insolvency regime has failed to attract sufficient numbers to inspire any confidence in its ability to act as a remedy for the crisis being experienced by thousands of householders. This is against a backdrop of despair for struggling families who are simply asking for a working mechanism to relieve them of financial hardship and an economy that needs a real solution to the never-ending cycle of unsustainable debt.

The process has been fatally undermined by the fact that banks have an effective veto in the debt negotiations. The entire process is fundamentally flawed as, at its heart, it has no commitment to be independent and impartial. Instead of being an independent arbiter, the appeals mechanism the Government has created gives the banks a veto in making progress in tackling debt. The very institutions which brought the country and its people to the brink are now judge and jury over families' prospects of staying in their homes. The very people the personal insolvency regime professes to help have recognised its folly and voted with their feet.

The Land and Conveyancing Law Reform Act which the Bill aims to amend is yet another step in the direction of placing additional power in the hands of the banks. If they wield their powerful veto over any arrangement, homeowners will be left with only the final desperate option of filing for bankruptcy to save themselves. They will also face the very real prospect of losing the family home. The Land and Conveyancing Law Reform Act 2009 was sweeping legislation, reforming many aspects of land law, including ownership trusts, co-ownership, conveyancing and - this is relevant to the Bill - mortgages. The purpose in doing so was to simplify existing land law which stretched back to feudal times and to enable the introduction of e-conveyancing. The legislation was the result of a detailed Law Reform Commission project under Mrs. Justice Catherine McGuinness and Professor John Wyle. The project began in 2003, with the Bill being introduced in the Oireachtas in 2006, with all party support. Mortgages were not part of the major overhaul of a complex set of laws.

A wave of unjustifiable home repossessions across the country cannot be tolerated in any shape or form. Legislation from Dáil Éireann which facilitated such an outcome would be to the eternal shame of legislators in this House. Home ownership is of intrinsic importance to the well-being of the individual and the family. Struggling homeowners need help. To ask a large proportion of the population to participate in economic recovery when their primary concern is to stay in their homes does not make sense. The social and economic fall-out from repossession is simply unimaginable. Government indifference on this matter has prolonged the pain for struggling homeowners. Behind every single mortgage statistic is an individual or a family blighted by worry and uncertainty. Plain and simple, the people concerned need protection; they should not be left at the mercy of banks which the Government is allowing to act as they please.

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