Fergus O'Dowd (Louth, Fine Gael) | Oireachtas source

Táim i bhfábhar an Bhille seo. Tá sé práinneach agus tá sé in ann dó. Maidir le daoine le mórgáistí atá rialaithe, or regulated mar a déarfá i mBéarla, tá sé an-tábhachtach, dá ndíoltar na leabhra iasachta, go mbeadh na rialacha céanna ag baint leis na morgáistí i ndiaidh an díolachán is mar a bhí ann roimhe. Is bunchloch í d'aon tír dhaonfhlathach go leanfadh aon chearta a bhain le morgáiste ar aghaidh agus go mbeadh brú ar an gcumann nua géilleadh leis na cearta céanna agus nach mbeadh an seans ann na cearta sin a chaitheamh siar agus a rá nach bhfuil aon bhaint acu leis an gcumann nua.

Bhí próiséas sofheicthe ag baint leis an mBille seo. Bhí sé sin le feiscient sa tslí ina rinne an Rialtas agus an Roinn an scéal a scaipeadh. Do nocht 15 eagraíocht a gcuid tuairimí ar an mBille seo agus is féidir na tuairimí sin a léamh ar an idirlíon, ina measc tuairimí an financial services regulator agus an consumer association. Is maith liomsa na cinn sin ach go háirithe.

Measaim go bhfuil an Rialtas tar éis an comhairle sin go léir a thógaint ar bord.

I fully support this legislation. It is timely, essential and clearly urgent. Of the 760,000 mortgages on primary dwellings in this State, 15.5% or 117,000 are in arrears. In regard to mortgages on buy-to-let properties, 26.8%, or 38,463 are in arrears. That is a serious situation for the families concerned, particularly those who have mortgaged their homes. Every day people in severe financial distress come to our clinics seeking assistance. I commend MABS and local credit unions on working with these families to do whatever they can to help them get out of the distressing and stressful situation in which they find themselves. It was nobody's fault that people lost their jobs in the bust but many families do not know where to turn. This legislation will ensure that the rights attaching to mortgages managed by regulated institutions will accompany the mortgage books if they are sold onwards. That is constructive and positive.

Perhaps we need to do more for businesses. This legislation will apply to small and medium enterprises as well as to primary dwellings. The objective is to facilitate access to credit for sustainable and productive business propositions. The consumer code is essential in this regard. By supporting businesses and giving them security they will not have to worry about their loans being sold on or being unable to trade due to financial pressures.

While I accept that the primary purpose of this Bill is to provide protections for mortgages, we should also consider ways of dealing with loan sharks who are regulated by the Central Bank. As regulated entities, the maximum interest they can charge is 188%. One company charges an interest rate of 187.2%. It is time the Government tackled this problem. We should investigate these companies minutely because they are sucking blood from people who are in parlous financial situations, many of whom are living from day to day and need the loan to tide them over until they receive their unemployment assistance. These companies offer door step and pay day loans. Even though they may be regulated, it is unacceptable that people without alternative access to credit, employment or financial status, and who may not even own their own homes or cars, are forced to take out such loans. Notwithstanding the welcome fact that our unemployment rate has dropped to 10.5% from a high of 15%, unemployment is still far too high and too many people are still in extremely difficult financial circumstances. I suggest that further legislation be considered to put these loan sharks out of business.

MABS is the opposite of the loan sharks. It does fantastic work. As Deputies will be aware, if we contact MABS about somebody who is an extreme situation, it will prioritise that individual's case and get in touch with the loan sharks or other lenders. I must also mention the Society of St. Vincent de Paul, which is extremely supportive of decent, honourable people who through no fault of their own have fallen on hard times or into the hands of loan sharks. There has been a huge change over the past several years in terms of looking after people who are in financial distress. I welcome this legislation and urge the Minister of State, Deputy English, to consider reducing the rate of interest these blood suckers can charge. It is an appalling way to extract money from vulnerable people and we should not be allowing them to charge these unacceptable interest rates.

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