Finian McGrath (Dublin North Central, Independent) | Oireachtas source

I thank the Leas-Cheann Comhairle for the opportunity to speak during this important debate on the issue of mortgage arrears and its impact on families and society. I commend Deputy Stephen Donnelly on bringing this matter before the House. I commend him on not just discussing the huge crisis but for putting forward solutions. That is what Independents do. That is why we are different and that is why we are outsiders to the political establishment and the elite in this country. Independent Deputies will stand up and protect the rights of our citizens. In this debate tonight, we show in a clear and concise manner solutions to the mortgage arrears problem. I challenge Deputy Barry Cowen's comments over the weekend. He stated that Independents need to explain their policies and what they stand for. During the week, Deputy Catherine Murphy, an Independent Deputy, did an excellent job on the Siteserv issue. Recently, Deputy Tom Fleming led the charge in respect of small rural schools and the Government sat up and took note. Tonight is another example. Tonight Deputy Stephen Donnelly pushes this issue. That is what Independent Deputies are about, these are our policies and here are our practical solutions.

As of December 2014, 156,352 mortgages were in arrears in Ireland. That figure is significantly higher than the figure in comparable countries. The suffering and social cost for those affected by arrears and repossession is ongoing. The nation is also suffering the socioeconomic cost of mortgage arrears and repossessions. Tonight I emphasise families and their family homes. They have to be given priority. The banks have to accept this and get on with implementing sensible solutions. The banks should never forget what they, along with a group of elite and incompetent people, did to this State and our citizens. People should realise that it was not the bank guarantee that sank the country but bad decisions made by a small group of this country's powerful citizens during the boom. The identity of who is responsible is no secret, but that is another day's work.

We talk about debt and we talk about supporting people. Independent Deputies will challenge the European view on debt and mortgage arrears. We should look at our own history and that of Europe. Our friends in Greece are European citizens. The lectures coming from the bigger countries are scandalous. Germany defaulted unilaterally in the 1930s. It got massive debt relief in 1953. Poland had large debts written off in 1989. Greece is a damaged and broken country and the European Union should help it. The Government should support it as well. We need a collective response, such as in this debate. We should not be isolating and attacking people.

I welcome the recent reductions in total mortgage arrears levels. I also welcome the initiatives by some lenders to provide borrower-focused debt restructuring solutions. I support strongly Deputy Stephen Donnelly's support of the recommendations of the 2014 cross-party Report on Hearings on Matters Relating to Mortgage Arrears Resolution Processes of the Joint Committee on Finance and Public Expenditure.

We need to look at the details and examine what is actually going on. We need to face the reality of what is happening on the ground. There is a complete lack of financial expertise available to many borrowers facing mortgage difficulties and repossession. There is a lack of legal representation available to many borrowers facing mortgage difficulties and repossessions. There is an inconsistency in approach being taken by different lenders to mortgage restructuring and repossessions. There is a lack of transparency in reaching decisions on mortgage debt. There is the lack of a mechanism to mandate lenders to provide reasonable solutions. There is a complete absence of stress testing of restructuring proposals. Low levels of insolvency arrangements, including bankruptcies, are being agreed. There is a prevalence of five year income attachment orders to bankruptcy orders. There is a low take-up of the mortgage-to-rent scheme and onerous eligibility criteria. That is what is going on at the moment in this country.

It is important that we focus, but we should never forget that families, mothers, fathers and young children are involved. Many of them lost their jobs and have found themselves in very difficult situations. What do we need to do to help these people? We need to fund provision, at the start of the process, of independent financial expertise to borrowers in arrears, including personal insolvency expertise, where those borrowers cannot afford such expertise. We need to fund the provision of adequate legal representation to borrowers facing repossession threats, where those borrowers cannot afford such representation. We also need to request the Central Bank to define what constitutes a sustainable solution from the borrower's point of view, including stress testing and the retirement period for borrowers. We need to strongly incentivise the provision of a set of solutions across lenders, to include split mortgages, mortgage-to-rent schemes and certainty on residual debt when properties are sold or surrendered. We need to incentivise lenders to realise consistency, transparency and fairness in proposed solutions.

We need to examine the legislation. We need to amend the Personal Insolvency Act 2012 and reduce the bankruptcy period to one year, until resolution of the mortgage arrears issue. We need to reduce the maximum payment attachment order period to three years, until resolution of the mortgage arrears issue. We need to simplify and streamline the personal insolvency process.

We need to empower the Insolvency Service of Ireland, ISI, to provide a formal opinion where solicited by a personal insolvency practitioner, PIP, on the adequacy of the PIP's restructuring proposals. We must consider removing the payment of VAT on insolvency disbursements. These are some of the proposals contained in this excellent motion. It is important that the Government listen. It is not doing so at the moment. It needs to up its game. The Minister of State and the Government must listen carefully to the solutions to these problems.

I support the proposal to amend the Land and Conveyancing Law Reform Act 2013 to ensure that any repossession action includes a sustainable restructuring proposal for all outstanding debts and to allow consideration of the ISI's opinion as to the adequacy of the PIP's restructuring proposals as grounds for refusal of the application for repossession. I would like to amend the parameters of the mortgage-to-rent scheme so that a reasonable number of homes qualify for consideration and for consideration to be given to a mortgage-to-lease scheme providing off-balance sheet funding to purchase repossessed homes. We should review the outcome of repossession hearings so as to understand the level of consistency in the granting of repossession orders. It is important that the Minister consider these proposals.

Today, the Minister for Finance stated that the current strategy had assisted borrowers and lenders in reaching agreements, with the restructuring of 115,000 mortgage accounts. He also stated that the Government intended to make an announcement on this issue in the coming weeks. If he listens carefully tonight, however, he will see that there are excellent proposals in this motion.

It is important that we challenge those who question the integrity, vision and leadership of many Independent Deputies. Not only do we hold the Government to account but, as with tonight's motion from Deputy Donnelly, we propose sensible solutions that are on the side of the people, taxpayers and, in particular, those families that are suffering and in deep crisis owing to mortgage arrears.

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