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

Some of the recommendations are applicable to the Department of Finance and others are applicable to the Central Bank and the banks themselves. Of those that are applicable to the Department of Finance, recommendation 2, for example, states that the committee rejects the Central Bank’s general acceptance of legal solutions as “sustainable” and requests the Minister for Finance to intervene. The strong view of the Government is that in respect of co-operating borrowers under the mortgage arrears resolution process, repossession of a person’s primary home should only be considered as a last resort. Every effort should be made to agree an acceptable arrangement as an alternative to repossession. I assure the Deputy that both my Department and I have expressed that view to lenders and keep in regular contact with them on this important issue.

Recommendation 20 is another one that applies to the Department of Finance. It calls for promised legislation on the code of conduct on mortgage arrears to be progressed with the utmost urgency. I am committed to bringing forward legislation that protects consumers where mortgages are sold to unregulated entities. The Government has reiterated the commitment on several occasions. In July and August of this year my Department ran a public consultation seeking views on its proposed legislation to protect consumers whose loans are sold to unregulated entities. We got 18 submissions from a range of respondents across the interest groups. Officials in my Department are carefully considering the submissions. It is anticipated that the legislation will be published before the end of the year.

Recommendation 35 also applies to the Department of Finance. The committee notes the success of the pilot initiatives financed by AIB whereby independent advisers to customers in arrears facilitate re-engagement into the resolution process. There was a recommendation from the committee to expand on the process. The Government has provided an enhanced range of information and guidance services for mortgage holders, including a dedicated information website, a mortgage arrears information and advice helpline and the provision of independent financial advice for mortgage holders who are presented with long-term mortgage resolution proposals by lenders. The advice is provided by a panel of accountants drawn from members of the main accountancy institutions in Ireland who have agreed to participate and support their independent service.

Recommendation 37 is another one that is applicable to the Department of Finance. The committee welcomed the publication, monthly by the Department of Finance, and quarterly by the Central Bank, of mortgage arrears figures but noted the differences between the figures and recommended that both parties would liaise to produce an agreed uniform set of data.

The Department has requested the six main lenders operating in Ireland that fall within the Central Bank mortgage arrears resolution target process to provide data on the restructuring situation. The process is separate from the Central Bank and the two sets of figures will not always match. A number of recommendations are applicable to intervention by the Central Bank and the Governor has committed to writing to the committee, which can discuss the range of recommendations with him.

If the implication of the question is that we did not take the report seriously, that is not the case, as we did. I did read the report and thought it was very good. There is much material in it that will assist the situation.

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