Michael Noonan (Limerick City, Fine Gael) | Oireachtas source

I would like to thank Deputy Healy for raising this question. As he is aware, I have no direct function in the relationship between the customer and PTSB, or AIB and its subsidiary EBS. Notwithstanding the fact that the State is a shareholder in these institutions, I must ensure that these banks are run on a commercial and independent basis to ensure the value of the banks as an asset to the State.

Decisions taken by the banks are a matter for the board and management of the relevant institution. The relationship framework agreements define the arm's-length nature of the relationship between the State and the banks in which the State has an investment. The banks are therefore entitled to pursue all options open to them in order to realise the value of their impaired assets, within the significant constraints imposed by their regulator, the Central Bank and the law as it applies.

The Government has put in place a broad strategy to address the problem of mortgage arrears and family home repossessions. The primary focus of this strategy is to support those home owners in difficulty with their mortgage repayments and, in so far as possible, to avoid repossession of family homes. In recent months, the Government agreed measures to enhance awareness of and access to the insolvency framework. We expanded the mortgage-to-rent scheme, making it more accessible. In addition, my colleague, the Minister for Justice and Equality, Deputy Frances Fitzgerald, also introduced the Bankruptcy (Amendment) Bill 2015, which will, among other things, reduce the normal duration of bankruptcy from three years to one year.

The Central Bank of Ireland's code of conduct on mortgage arrears also provides protection as it sets out requirements for lenders dealing with borrowers who are facing, or in, mortgage arrears on their primary residence. It ensures that borrowers struggling to keep up mortgage repayments are treated in a fair and transparent manner by their lenders and that long-term resolution is sought by lenders with each of their borrowers.

The number of mortgages in arrears continues to fall. There are almost 121,000 restructuring arrangements in place and the vast majority of these are working. The figures demonstrate that most families can, working with their financial institutions, find an arrangement to make their mortgage commitments affordable. Active engagement by indebted borrowers with their lenders is key to achieving sustainable resolutions. I would urge borrowers in arrears who have not already done so to take that step by contacting their lender directly, or MABS, for an independent assessment of their situation and advice on available resolution options.

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