Tom Fleming (Kerry South, Independent) | Oireachtas source

Recently released Central Statistics Office findings in the first household finance and consumption survey on the financial state of Irish homes identified that almost 57% of families were in debt, with two thirds owing money on their mortgages. The average amount of debt on the mortgage is €129,000. However, for people aged under 35 years the average debt on a mortgage is €204,000, compared to a figure of €30,000 for households headed by a retired person. The survey also found that Irish people are still very reliant on dipping into overdrafts and are relying on credit cards to make ends meet. The average amount of debt on an overdraft in 2013 was €1,000 and €1,400 for credit cards. The average amount of debt faced by struggling householders was €63,000.

The survey showed that there are 698,000 people still in poverty in Ireland. Even though the poverty line has fallen by 16% since 2008, nearly one in seven people in Ireland are living in poverty. Over 211,000 of those are children. This is an indictment of Government policy and highlights its failure to protect the most vulnerable in society.

Numerous studies clearly show that the route out of poverty is education. The education system in Ireland is a first class example of a situation where those who can afford it get the best education. Families that can afford fee paying schools can also afford grinds and extra-curricular activities to enhance the life chances of their children. There are no such opportunities for the families at the bottom of the income spectrum. Third level attendance is another example of the gap between basic State education versus fee paying schools. The way out of poverty is education but real action is required from the Government to allow children from disadvantaged backgrounds to realise their ambitions and dreams and to equalise the unequal system that exists.

Some of the most equal countries in Europe have consistently demonstrated a commitment to subsidised child care. In Ireland, a household with one child could be paying €800 to €1,200 per month in child care fees. This obviously would increase for every subsequent child. In Europe, child care costs can be as little as just over €200 per month. If the Government adopted this policy each household would have €600 and more in disposable income per child per calendar month, which would be circulated back into the economy. Other actions that would affect inequality include free school books and transport and free third level education for students from lower and middle income households.

To return to the mortgage issue, the CSO figures released today show that Irish mortgage holders are carrying the highest mortgage debt ratio in the eurozone relative to the value of their homes. The figures show that the median loan-to-value ratio for owner-occupier mortgage holders in Ireland is nearly twice the European average at 73% compared to the eurozone average of 37%. The Netherlands has the next highest rate after Ireland at 52%. This reinforces the situation. The Government must step up its endeavours to take the pressure off people who are facing repossession orders at present. The banks are cherry-picking, and they are picking the easiest victims. If they are allowed to continue with this, we will have many more homeless people and it is obvious that we do not have the houses to house them. The Government must step up to deal with this venture by the banks.

See this speech in context