Catherine Byrne (Dublin South Central, Fine Gael) | Oireachtas source

I welcome the opportunity to speak on this Bill introduced by Fianna Fáil and acknowledge the situation of people in mortgage distress. I wish there was a quick fix but, unfortunately, there is not.

Since taking office, this Government has been working very hard to fix the economy and is making good progress. This is reflected in the growth in international confidence in Ireland. In 2010, when we were in recession and faced with financial insolvency, we sought a €67.5 billion international rescue. In 2011, our deficit was over €22 billion. By the end of 2015, it will have been reduced to less than €5 billion. This is the result of the hard work and determination of the Government and Minister for Finance and, particularly, the people of this country who have suffered for so long because of the major disaster created by Fianna Fáil. When in government it borrowed funds to meet social welfare costs, etc., rather than invest it in areas where it was badly needed. Fianna Fáil caused the property bubble and subsequent crash. It is responsible for many young people and couples having purchased houses which were beyond the reach of the average working person or couple.

This Government is doing its best to help the people now being contacted by the banks and brought before the courts. In this regard, it introduced the Personal Insolvency Bill, which was passed in December 2012, and launched the Insolvency Service of Ireland in March 2013. It has also put in place a range of measures to assist ordinary people who cannot pay their debts, including their mortgages. The Insolvency Service of Ireland helps these people in an understanding way, and has already helped huge numbers of people. The service puts people in touch with a personal insolvency practitioner, PIP, who can help them work through their difficulties with the banks and other creditors. People are being proactively encouraged to avail of this service. Since the suspension of application fees there has been an increase in the number of people availing of personal insolvency arrangements, which are solutions to their arrears problems. More people should be availing of these types of solutions. The first step is to make more people aware of what is possible and to encourage them to actively engage with the insolvency service. This will be the focus of this Government into the future.

The Government is also reviewing the operation of the insolvency service to ensure it has the power to support families willing to work their way through their debt problems. Of course, each situation is different and needs an individual solution. The primary focus of Government is a solution to keep families in their homes. The Government is making headway. The most recent statistics show a significant improvement in arrears, particularly in respect of family homes. The Central Bank figures, which indicate that the number of family homes in arrears has decreased over the last five quarters, underlines this trend.

In 2014, the number of mortgages in arrears decreased by 25,000. Figures from the Department of Finance in respect of the six main banks indicate that the number of cases of arrears in excess of 90 days has fallen by more than 15,500 since the start of 2014. In August 2013, 2,500 split mortgages were put in place by the six main banks. Currently, this figure stands at 19,000 and is rising. During the same period permanent restructuring for family homes provided by the six banks increased from 41,000 to almost 115,000. This is the proper way to go about helping people. We must lead people into the insolvency service where they will meet with people who can help them through their financial difficulties, rather than work against them. Like other Deputies, I could cite many examples of people attending my clinics who are distraught because of the level of debt in which they find themselves. We need to help people to resolve their problems and to do so we need to work together. This evening I call on the banks, which announced huge profits in the past couple of weeks, to do likewise. Bank of Ireland pre-tax profits for the year ending 2014 was €920 million. Ulster Bank made an operational profit of €606 million. It is time for the banks to step up and do what is required of them. The Irish people and the Government have helped to resolve the problem and it is now the turn of the banks.

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