Michelle Mulherin (Mayo, Fine Gael) | Oireachtas source

We have many relevant debates in this House but this is one of the least academic, even though much of it involves macroeconomics and other high matters. It concerns 110,000 households in mortgage arrears. The Government has talked about it for a long time and a suite of measures has been introduced to support people to find resolutions with pressure brought to bear on banks and supports for individuals. There is still, however, a serious problem for many of our citizens and families.

The banks are perfectly entitled to set interest rates and negotiate settlements on mortgages which were signed up to with no impediments. The banks are perfectly entitled under the normal legal way to repossess houses. However, it is not as simple as that. That is why this debate is taking place. We all know that 85% of people are making repayments, some struggling but they still do it. We still cannot ignore the 110,000 mortgages in arrears. If any substantial numbers of these people are put out of their houses, it will fall back on the State.

We are looking at a time when money has never been cheaper to borrow in Europe for both the Government and the banks. I do not think the banks can go back to business as usual, profits or anything else unless all sectors of our society and economy are fixed. We see people in mortgage arrears and businesses who cannot get credit. Yet, we see the banks levying excessive rates on variable mortgages, on overdrafts, on term loans and even on credit cards, the latter with an APR, annual percentage rate, of 22.5%. That may have been acceptable in a time gone by but how can the banks hope to survive if we cannot rebuild our economy? Our economy requires us to support citizens and businesses which are in distress. The banks have their role to play in this. We cannot proceed with the conversation of the past as to how banks could be independent from the State.

It is true that not all banks were bailed out, but the banking system was saved on the backs of this country's taxpayers. Not only do taxpayers continue to pay, but so also do vulnerable citizens whom we want to support. They have seen services cut back, so without a doubt it has had an impact on everybody.

Perhaps we need to take a different approach to the banks and I perceive that a turn has definitely taken place on interest rates. We want to help people in their homes and businesses, but if banks charge exorbitant interest rates it is taking it back with the other hand. The Government and politicians generally have to step in to bridge the gap. It is not acceptable and this is the reality check I am talking about.

I challenge the idea that a stay cannot be put on banks repossessing. If someone has shown a track record, but has fallen on hard times, they should be given a space before banks are allowed to repossess. I would like to see some independent adjudication of those circumstances. For example, if a person has paid their mortgage for five years, but then falls on hard times due to losing a job, it is unacceptable for a bank to take that person's house. Banks should be made to wait.

We have introduced emergency measures to deal with mortgage arrears and personal insolvency, so the banks should also experience some emergency measures to give people a break. An ombudsman could adjudicate on such matters. In that way, banks could not repossess property if the owners came up with realistic prospects for repaying mortgages.

Let us take another reality check. A few weeks ago, a woman came into me who was given a loan but should not have been. The loan term was going to conclude when she was 71 years old, although her pension would never be able to meet the repayments. No thought was given to that. She has now gone into mortgage arrears and all her savings are gone. She is a pensioner, yet she was given a loan by a bank that doctored papers. I have seen them myself. Little can be made of it, but banks are collectively responsible for this. The banks must be brought to account and be part of the solution.

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