Joan Burton (Dublin West, Labour) | Oireachtas source

The Deputy will be aware that the number of people in negative equity and mortgage difficulties is falling. It is not falling as far or as fast as I would like, but it is decreasing. The Taoiseach and I recently met with the Insolvency Service of Ireland and with personal insolvency practitioners, PIPs, who arrange deals with the banks and other mortgage suppliers where there are difficulties with mortgages. There is a problem at the moment in respect of the banks; it is not simply the case that some of the debtors are not engaging. I listened to the stories of personal insolvency practitioners from the four corners of the country. They indicated that in many cases a great deal of work had been done on an arrangement for a family or an individual with mortgage difficulties, but at the last minute, or during the process, the banks failed to engage. This is a problem; there is no doubt about it.

I have previously stated that the bankruptcy period ought to be reviewed. We reduced the bankruptcy period to three years in the legislation establishing the Insolvency Service of Ireland. There may be merit in examining the case for reducing it even further. This would help bring both parties together where workable solutions are available, because the situation is extremely stressful and worrying for the families described by Deputy McDonald.

Mortgage difficulties are particularly acute in the upper Shannon basin. During the previous Government's tenure, this region was the subject of a significant amount of tax allowance schemes for building and development. A number of reports show that this region remains an area of particular concern, with many families in difficulty.

My Department has established tenancy protocols in Dublin and across the country. We are working in conjunction with voluntary organisations such as Threshold, Focus Ireland and Simon to assist tenants who are at risk of losing their homes. They will get advice from my Department and the various organisations mentioned. It is intended that they would be able to negotiate staying in their family home. This has worked out very successfully in a significant number of cases.

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