Micheál Martin (Cork South Central, Fianna Fail) | Oireachtas source

In many respects that seems to indicate the lack of real action on mortgage arrears. For the past three and a half years, the Government's approach has been to leave the issue to the banks. The impact of the personal insolvency legislation has been negligible; the Taoiseach mentioned 172 cases. Despite all the elaborate debate and the creation of a large white elephant, there has been no real impact on those with mortgage arrears. There has been mention of a figure of 90,000 to 100,000 people who have been significantly in arrears for quite some time.

Many people have examined significant corporations and big businesses that are getting significant discounts on loans. For the average family in mortgage arrears, where a parent may have lost his or her job, there is no sense that anybody has dealt with them in a comprehensive or systemic way. That is a glaring reality of where we find ourselves. To a large extent, the Government took a hands-off approach to the crisis, especially with regard to the worst-hit families or those which are two years in arrears. The number of people who are more than two years in arrears is continuing to increase. Those people have not had any relief or seen significant structural changes to their debt which would allow them to contribute to the economy into the future and have a sense of certainty about their overall debt position within a reasonable timeframe. There is a combined value of approximately €8 billion of debt for families, which is of enormous social and economic significance. The Cabinet sub-committee, if we are to judge it by the frequency of its meetings, has not responded to the severity or depth of the crisis, particularly with regard to families in mortgage arrears.

There has been no attempt to free up the business side of the equation for small and medium-sized enterprises, and some SME owners have significant property debts that have brought down their business operations. Clear solutions have not emerged in that regard. I have dealt with quite a number of families with mortgage arrears and this is a large shadow in these people's lives. These families are depending very much on the goodwill of a particular bank or person in the bank and the hope that a bank will not engage too heavily. Different advice may come their way on how to respond. It has been three and a half years since the process started and it is time to get hands-on with those people who are in severe trouble. The Cabinet sub-committee on mortgage arrears and credit availability should meet far more often than it has to date.

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