Michael McGrath (Cork South Central, Fianna Fail) | Oireachtas source

I thank the Minister for his reply. We are all aware of the dramatic increase in the number of people going bankrupt in Ireland. Many people have gone to the UK to become bankrupt. The Minister has put a number of important facts on the record, including that 70% of those who went bankrupt in 2014 have lost, or will lose, their home as part of the bankruptcy process. It is a pretty sobering statistic for everyone to remember.

I have an open mind on the reduction of the discharge period, but it should not be the solution of choice for tens of thousands of people in mortgage arrears. I do not believe it is, quite frankly, because bankruptcy is a serious measure with significant consequences for those involved. In most arrears cases, there is a joint mortgage involving joint ownership of the property. If both spouses have to go bankrupt, it is not the most efficient way to deal with mortgage arrears. It may well be a worthwhile step for those who have more complex debt arrangements involving corporate and commercial debt, for example, but not for those in mortgage arrears.

The Minister referred to the need for more time to assess the impact of the recent reduction from 12 years to three years. He also referred to an analysis that has to be done. Perhaps the Minister can clarify if a particular initiative is under way to analyse the impact of the reduction from 12 to three years. If so, is there a timeline for completing it?

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