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

I wish to address the issue of mortgage arrears, particularly family homes in danger of imminent repossession and legal actions pertaining to same. The scale of the problem is still enormous. Over 118,000 family homes are in arrears and about 37,400 family homes are in arrears for more than two years. The latter group of family homes is in imminent danger of repossession because we have witnessed since the beginning of 2015 a wave of repossession applications and court actions across the country. Every Deputy could relate their own court system in their area. In Cork alone this week another 100 cases, between yesterday and tomorrow, are listed. Some 208 cases are listed for Limerick on Friday alone. That is just to name two examples. Up to 8,000 cases were in the courts last year, 2014. It seems that the banks have become emboldened by the property price increases. The value of the houses is going up, so they can now get back all of their exposure. They are prioritising that issue over sustainable solutions for families. We have all met families in which both parents are working, some in State jobs, yet which are being pursued in terms of the house being repossessed, with no real engagement on the part of the banks regarding sustainable options, through split mortgages, debt for equity swaps or other solutions.

My colleague, Deputy Michael McGrath, has put forward the Family Home Mortgage Settlement Arrangement Bill to be debated in Private Members' time tonight and tomorrow night.

It would utilise the existing personal insolvency structure and personal insolvency practitioners to deal with the issue in a sustainable way. Last month,the Taoiseach stated he was not happy at the way in which the banks were ignoring personal insolvency practitioners in mortgage cases. I put it to him that, all along, the Government's policy has been to give the banks a veto to dictate the pace, shape and nature of arrangements. It is time to call a halt to that policy as it has not worked. The personal insolvency framework has been woefully underutilised in only 199 cases. Of these, we do not know how many were related to family mortgages, yet 118,000 families are in arrears. We are being constructive in utilising the existing structures with a view to diluting the banks' veto and ensuring personal insolvency practitioners can bring sustainable solutions to the court, which could make orders to give them a chance to work. It is time to end the banks' veto. The Government's policies have not worked.

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