Liam Twomey (Wexford, Fine Gael) | Oireachtas source

It has become clear during the course of the discussions of the Joint Committee of Inquiry into the Banking Crisis that reckless lending and reckless Government policy from 2002 to 2008 were at the root of the crisis that we are still talking about in 2015. The horrible legacy of that reckless period will be with us for some time to come. While it is easy to throw around figures, one must ask what it is all about. There were 1,500 repossessions approved in the Irish courts last year. That means that family homes were handed back to the banks by 1,500 families in 2014. Some of those repossessions came about because of marriage break ups while others were the result of arrears built up because of job losses. Unfortunately, repossessions will continue for the foreseeable future because of the extent of the crisis and that is very regrettable. It is very difficult for every single person who loses their home. We all know people in this situation; they are in our communities.

It is shocking to see what has happened. I am glad the tone of tonight's debate is not about confrontation across the floor. There is an acknowledgment that we quickly need to find solutions that work for families.

Work has been done over the course of the Government's lifetime, including work with MABS, reform of the banks and the insolvency legislation. However, I agree that not enough has been done. As the Minister, Deputy Noonan, made crystal clear today we want to have a Government in 2018 that bears no resemblance to the Government of 2008 and the legacy it left behind. We just cannot afford to put the citizens of this country through that sort of hardship and crisis again. It is time for us to deal finally with this issue.

Some 30,000 people are going through the courts at present. That is not 30,000 repossessions but 30,000 people who are in the courts. We need to get people to engage. Why do people not engage? Much of the conversation we have heard in recent years is that the banks will only turn them over anyway and kick them out of their homes. That is not what we want to hear. We want people to engage with the banks. We want to hear what the banks are saying to them and we want to be able to work with those people. While the number of families would be lower than 30,000 it is a significant number with probably more than 25,000 families suffering anguish. When these types of financial problems hang over people who might not know if they will have their family home in one, two or three years it brings an incredible stress to the dynamics of any family. It brings tremendous mental health problems to the people involved and the stress is unacceptable. We need to focus our minds in this issue. It is important that we have turned our economy around. If we were not creating jobs, more people would be going into arrears and losing their homes at a fierce rate. If we were not growing the economy and had not stabilised the crisis, it would not help the people who are still paying their mortgages. Some 85% of people with mortgages are still making their repayments, many under huge strain to make those payments every month. In particular the people with variable mortgage rates are having a hard time paying at the moment.

We need to ensure we get the issue of mortgage arrears off the agenda. We need to do our absolute best to help these people. I am delighted the Taoiseach announced a few weeks ago a strong co-ordinated effort. It goes back to the report mentioned earlier where all members of the Joint Committee on Finance, Public Expenditure and Reform made it clear that this is very important for all of us. This is not just a Government, Fianna Fáil, Independent or Sinn Féin issue; this is something we all feel very close to our hearts. We want to see a solution that will work for everybody.

Previous speakers have pointed out a number of actions we need to take. The mortgage-to-rent scheme is very important. However, the trouble is that many of the banks do not want to become property developers or property companies. We must find innovative ways to look at other companies that are fair and reasonable, and may have an Irish dimension to them that are quite happy to manage properties on behalf of the State and where the banks can reach agreements with them to manage these. Many of these properties are not saleable in the truest sense of the word. They are not in large urban areas or in high street areas. They may be out in the country, on the edge of towns or in unfinished housing estates. We need innovative ways to deal with the issue.

For instance, many of the people who have given up their homes voluntarily cannot go on a council housing waiting list, which is ridiculous. We need to allow people, who give up their homes voluntarily and who make an agreement with the bank to write of the residual debt, an opportunity to make a fresh start. That is what we all like to do if we make a big mistake in our lives. We do not need to beat people up for the rest of their lives because they got caught up in a crisis that was not of their making in many respects. We need to give them the opportunity to start again. We must make that pathway easy.

As Deputy Catherine Murphy said earlier, houses may not be available in a particular area but at least they should be given the opportunity to get on the housing list to get some of the benefits the Government can give to help them house their family and have the dignity that is brought about by living in their own family home without this huge financial burden sitting on top of their shoulders weighing them down for the rest of their lives and having that huge negative impact on family members, especially children. That is why I am delighted the Taoiseach and the Ministers involved are making a strong and cohesive effort to sort the issue out. We should give them our full support.

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