James Bannon (Longford-Westmeath, Fine Gael) | Oireachtas source

This important and vital issue should be discussed more often here. There is not a single Deputy in the House who does not understand how serious the issue of mortgage arrears has been for families in their constituency. As public representatives, we have a responsibility towards families in arrears. Whenever anyone comes into my office or constituency clinics to talk about mortgage arrears, the first thing I always do is strongly advise them to request the bank files about their mortgage and a copy of all information the bank holds on them. I then talk them through the wide range of services available to borrowers in distress. We have some excellent debt advice services, which do important work in our local communities. The financial institutions have also put large, dedicated teams in place to engage with borrowers. The establishment of the Insolvency Service of Ireland was an important turning point in addressing cases of over-indebtedness.

In my native county of Longford, almost one in five mortgages are in arrears, making our small county one of the most severely affected by the property crash. Only a few months ago, the Central Bank, for the first time ever, broke down the level of default on home loans on a county-by-county basis. This showed that Longford has the highest rate of 19% with Westmeath at 16%. Other counties in the Shannonside region, like Leitrim and Roscommon, saw one in seven mortgage holders in arrears for three months or more.

Despite these high rates of mortgage arrears, there is clear evidence that there is better engagement and communication between banks and distressed borrowers.

This increased communication and a willingness to work together has resulted in the number of private dwelling home mortgage accounts in arrears declining by over 25,000 in 2014, while figures from the Department of Finance show that almost 115,000 restructured agreements have been reached by borrowers and lenders.

Since taking office we have introduced a suite of legislative measures to assist distressed borrowers and keep them in their homes. We have seen the establishment of the Insolvency Service of Ireland and the reform of the bankruptcy laws. The Land and Conveyancing Law Reform Act 2013 included provisions to protect the principal private residences of borrowers in mortgage arrears. Meanwhile, the Personal Insolvency Act 2012 instigated a new debt resolution mechanism including the writing off of debt. These were all important measurers that provided room to breathe for families who found themselves in mortgage arrears. When we examine these measurers it becomes clear that this Government does not see repossessions as a policy solution, and every action that has been taken since taking office has been designed to ensure that the maximum number of people and families can continue to live in their homes.

It is also clear that tackling mortgage arrears has been a dominant policy concern since 2011. It is an issue on which we have been working tirelessly and the Minister must be congratulated for his work to date on that matter. However, as we have seen with the high arrears rates in Longford and the wider midlands region, many families are not experiencing the full benefits of the economic recovery because of their crippling mortgage payments. It is vital that any future legislation or measures to tackle mortgage arrears has a designated plan to reduce the high levels being experienced by midlands counties. We must also realise that over 85% of mortgage holders are meeting their obligations with respect to making their monthly repayments, and in many cases this occurs at significant personal sacrifice. On that issue we are aware of many individual stories.

There is one serious issue that is often overlooked, however. Under the Insolvency Act 2012, any insolvency planner can make a proposal to a bank about how to restructure an individual's debt. This could be a very reasonable proposal yet the bank has the option to veto it without any avenue for recourse. I strongly urge the Minister to consider the creation of an oversight committee where insolvency planners and their clients can appeal a bank's decision on how debt is to be restructured. For example, a High Court judge could fill this role.

The Government is very aware of the difficulties facing families. We have made some important strides in tackling the issue as a result of the set of policy approaches we have taken. The increased communication between banks and those in arrears has also played a positive role, but we should remember also the role played by the huge number of people in mortgage arrears.

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