Brian Walsh (Galway West, Independent) | Oireachtas source

I welcome the opportunity to speak briefly in this debate. I commend Deputy Donnelly and his colleagues for giving this matter the attention it deserves. They are keeping the pressure on this side of the House to ensure that action is taken to address the issue. I am confident that it will be addressed. The Minister, Deputy Noonan, the Minister of State, Deputy Harris, and the Government as a whole are working on a suite of measures to be introduced in the coming weeks, which will deal with this issue once and for all.

It is the last defining issue that the Government must deal with during the remainder of its term. It is part of a damning legacy that has been left to us by the Celtic tiger. It has placed a millstone around the necks of so many families, which is preventing them from benefitting from the rising tide of economic recovery. Unless our response is commensurate with the scale and gravity of the crisis, those people will be left behind as the recovery continues.

Heretofore, Government policies have focused on providing structures and supports that allow mortgage holders to find solutions and avail of them. There have been a number of initiatives in this regard.

The proposers are to be commended for their positively worded motion. There is always a temptation to have a go at the Government if they feel we are not doing the job to a certain acceptable standard. In fairness, however, this motion does offer some solutions and its tone is quite positive. As the motion states, a number of initiatives have already been introduced by the Government. We have introduced comprehensive personal insolvency legislation. In addition, information lines are available to those who find themselves in mortgage distress. There are a host of other measures, including a code of conduct and a set of standards for banks dealing with those in mortgage arrears.

I agree with what Deputy Michael McGrath of Fianna Fáil had to say earlier about whether or not some of the solutions that are being offered are sustainable. Time will tell whether kicking the can down the road by capitalising arrears on mortgages is a sustainable solution for borrowers. That is the solution that has been offered in many of the agreements reached with borrowers.

There is a difference in how various banks deal with borrowers. Last week, AIB representatives appeared before the Committee on Finance, Public Expenditure and Reform and they are offering practical solutions. They have identified that many of the borrowers, whose mortgages are in arrears, are in difficult circumstances. The best option for them is to crystallise the loss, write down the mortgage and, if necessary, seek voluntary surrender. AIB did make it clear, however, that that is the last resort. If some level of repayment capacity can be shown, that bank at least is prepared to offer significant write-downs to lenders. We need to have some level of consistency in the way different banks deal with borrowers.

Repossessions are taxing the minds of many people at the moment. Last week, AIB indicated that it uses the threat of repossession as a tool to force borrowers who are not engaging with it to do so. Unfortunately, many borrowers just bury their heads in the sand and do not engage with the lender. That should not be the case. I strongly advise people to pick up the phone, as difficult as that may be, and try to deal with the bank because ultimately that is the only way they will get some sort of a resolution.

We must be frank about repossessions, however. There cannot be a properly functioning mortgage market without banks having the right to enforce and realise their security, if necessary. If that threat did not remain with the lender, no one would meet their mortgage payments. The banks have indicated that they are using this threat to force borrowers to engage. In fact, however, the vast majority of such cases in court are adjourned.

I welcome the motion and I look forward to the proposals that the Minister, Deputy Noonan, and the Minister of State, Deputy Harris, will put forward in the coming weeks to deal with this crisis.

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