Liam Twomey (Wexford, Fine Gael) | Oireachtas source

We are not completely in disagreement with Deputy Ellis on this side of the House. There is a serious crisis here. I have been a member of the Finance committee since 2007 and we have watched as our economy has basically imploded. We have seen what has happened to people and their livelihoods. It has been absolutely horrible.

At the end of the third quarter of 2009, approximately five years ago, 3.3% of home mortgages were in arrears by more than 90 days. By the end of the third quarter 2013, this time last year, some 12.9% of home mortgages were in arrears of more than 90 days. It is a catastrophic crisis. Not everyone can keep their homes but we must be mindful of the homeowners and children who have endured such a crisis. We must make sure we provide alternative homes, not alternative accommodation, for these people. It has had a shocking impact on young people and young families.

The mortgage to rent scheme is a good idea but it is not working well. I hope the Housing Agency, which has taken responsibility for it, will come up with better results than those we have seen so far. Housing in rural areas may not suit a housing agency and there are concerns about too many people being in a house or a house being too big for the people involved. The mortgage to rent scheme may not work for everyone. The priority remains to keep people in their homes.

The Government has responded but, as with everything else, more can be done. The crisis was almost overwhelming in an era when the economy was going through a significant crisis. Since 2011, the Keane report was published and the Government, along with the Central Bank, has responded. We have had legislation on personal insolvency as the previous legislation in that area did not work for those in serious financial debt. We introduced the mortgage arrears and information advisory service. One of the major problems with people who were in mortgage arrears was that they stopped engaging with the lending institutions. The crisis overwhelmed them and they stopped engaging. A service with fees removed is welcome so that people can engage and try to work themselves out of the crisis.

A practical measure introduced by the Minister for Finance was to increase mortgage interest relief for those who purchased houses between 2004 and 2008 to help them hold onto their homes. The Central Bank code of conduct on mortgage arrears is being used. The report of the Joint Committee on Finance, Public Expenditure and Reform recommends that this should be put on a statutory footing, with which I agree. We have had a response from the Central Bank but we are awaiting a response from the Department of Finance.

The Central Bank is also working on the mortgage arrears resolution process because there is a need to help thousands of householders who are in difficulty. Some 70,000 people are in a crisis and there are also individuals in rental accommodation owned by someone else securing a buy to let mortgage. That person may be in mortgage arrears and we need to take on board those issues. The Government is working towards this and everyone, including the banks, needs to up their game. The banks have appeared before the Joint Committee on Finance, Public Expenditure and Reform every year since 2009. The Governor of the Central Bank and the Department of Finance have appeared before the Joint Committee on Finance, Public Expenditure and Reform to discuss this. Progress is being made but it could be made faster. The report on hearings on matters relating to mortgage arrears and the resolution processes published just before the recess by the Joint Committee on Finance, Public Expenditure and Reform could form the template to move the issue along as quickly as possible. I do not know how quickly we can get these resolutions sorted out.

One of the best things that happened last year was the drop in unemployment figures. We are creating jobs in the economy and this is taking people out of the crisis. We must move forward in our effort to make sure we get people working. Equally, we must move forward in resolving the crisis.

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