Bernard Durkan (Kildare North, Fine Gael) | Oireachtas source

I am glad to have an opportunity to speak on this particularly important and sensitive issue. I thank Deputy Michael McGrath and Fianna Fáil for bringing the issue before the House. I do not necessarily agree that the Bill is a means to resolve the difficulty we have. We all recognise and must recognise the degree to which borrowers have been subject to very traumatic situations over the last number of years. It has not got any better with the passage of time. As a matter of fact, it was always a situation that was going to get worse with the passage of time. We need to empathise with those who are in difficulty and are paying higher interests rates than their peers across Europe. The banking fraternity must note this and take the appropriate action, which they can do. Let us not forget one thing. We were told for many years before the economic collapse that everything was controlled from Brussels. We could not control interest rates and we could not control economic policy because it was all controlled from Brussels. Here is a situation where in Brussels and similar countries the interest rates are lower. It is only fair to expect that the rates would be passed on by our banks to borrowers. I recognise fully what Deputy John Halligan said in relation to the fact that the banking fraternity was bailed out by the people of this country. Compassion was shown to the banking fraternity at great cost to the people. A little bit of compassion, understanding, recognition and movement would be greatly appreciated now.

I have listened to a great deal of rhetoric inside and outside the House over the past couple of years on what should be done in particular situations. It is hugely important that we as public representatives advise the public in their interests and not in ours. We should advise in the interests of the families and not in our political interest. It is very easy in the interest of political expediency to say to someone "Do not pay" when somebody else has got a concession. The fact that somebody else got a concession we do not know about and do not have the intricate details of makes it very easy to say that to someone who might well find themselves in a difficult situation as a result of following the advice we might give. I express a word of caution to those who might be advised by those who say they do not have to do X, Y, or Z as other people have got away with something and they are entitled to the same thing. We must be very careful about that and recognise that the people we might advise and that some financial advisors might advise might be the first to be hurt.

We must be reasonable and recognise the situation that presents itself. We must also recognise that there is an extent to the burden that a family can bear. A golden rule should apply whereby borrowers should be expected to pay the amount that is within their capacity to pay. It does not make any difference what the previous circumstances were when the lending institution issued the loans or whatever the case may be. Following a number of years of difficult circumstances during which people have been trying to raise their families and meet their commitments to the best of their ability, it is extremely important that recognition is given to the fact that roughly one third of one's disposable income is normally regarded as being acceptable in what one would be expected to make in repayments. After that, there are many options available. To be fair to most of the lending institutions, they are prepared to negotiate, to enter into an arrangement and to listen to reason. Occasionally, one or two go offside and in those circumstances it is unfortunate that they do so. We have to live with our memories and there are good ones and bad ones. We have had many bad memories in recent years. I am not going to attribute those to anybody, not to the Opposition nor anyone else. It would not be fair to do so. The circumstances in which we found ourselves as individuals and as a nation need to be recognised and there needs to be a response from all the contributing parties. In this particular case, it is the banks. The Minister and the Taoiseach have already engaged, to a fairly considerable extent, with the banks and I believe their influence will eventually prevail.

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