Robert Troy (Longford-Westmeath, Fianna Fail) | Oireachtas source

It is outrageous that the Government is not dealing with mortgage arrears as a priority. We will face an unbelievable problem in the new year, when thousands of families will be evicted from their homes because of mortgage arrears. The number of family mortgages in arrears of longer than 90 days has doubled since this Government came to office. The number peaked at 12.9% of all mortgages in September 2013 and has fallen only slightly since then. A total of 74,192 mortgages are in arrears of more than six months and 37,484 families are in arrears of more than two years. These people are in real danger of having their family homes taken from over their heads. The Government is stuck in a mode of thinking whereby the banks are allowed to dictate the pace and the nature of the restructuring arrangements. The banks' response to the Government's mortgage arrears resolution targets programme was to step up legal proceedings.

In response to the banks' actions there is a need for a clear definition of what is a sustainable mortgage and much greater standardisation in approach.

The Government heralded two major initiatives to tackle this issue, one of which was the mortgage to rent scheme. To date, that scheme has dealt with 50 applications, even though there are tens of thousands of people in arrears. The second brainwave or initiative of the Government was the Personal Insolvency Act 2012. When this legislation was going through the House, the then Minister for Justice and Equality, Deputy Alan Shatter, estimated that in its first full year of operation the Insolvency Service of Ireland would have 21,000 applications for debt resolution. To date, there have been only 311 applications. Therefore, t is not working and the reason it is not working is that the power has remained with the banks.

I will offer the Minister two examples involving two constituents I have dealt with recently. One took out a loan of €135,000 to buy an apartment. That was the value of the apartment at the time. Today, it is valued at €50,000. That man is lucky to be working and he approached the bank for some help. Its offer was a take it or leave it choice. It wants €1,000 per month for 30 years. That is €360,000 for a loan of €135,000 for an apartment worth €50,000. The banks have the power to say "take it or leave it." My other constituent was seeking to enter the mortgage to rent scheme. The bank, permanent tsb in this instance, offered the market value of the house to a housing body and intended to put this lady in the house. She was going to pay rent to the housing agency and then pay a mortgage on the difference between what was owed and what the bank was giving the housing authority. She would have been €500 per month worse off. Again, she was told she could take it or leave it.

I understand this is not the Minister's Department or his direct responsibility, but somebody must tell the Government that it must wake up. This crisis is very real. It is wrong that tens of thousands of families are approaching the Christmas period thinking that this will be their last Christmas in their family home.

See this speech in context