Darragh O'Brien (Dublin Fingal, Fianna Fail) | Oireachtas source

This Bill presents an opportunity for Government Deputies and Ministers to redeem themselves. The track record of the previous Government with respect to mortgage holders has been nothing short of abysmal. One of the first things the Minister, Deputy Noonan, did in the previous Government was to rip up the previous code of conduct on mortgage arrears and water it down in favour of the banks. That happened and that is a matter of record. That Government then moved on to set aside the Dunne judgment, which gave some protection to people in family homes by stopping banks repossessing those family homes. That Government then brought in the Land and Conveyancing Law Reform Act 2013. We said to the Minister's former colleague, the former Minister for Justice and Equality, Alan Shatter, at the time that it would lead to thousands of civil bills and thousands of home repossessions, as it has done and is doing. In that watering down of people's rights, that Government became a cheerleader for, and a supporter of, the banks and it put their interests above those interests of the people it was supposed to represent.

When we look further down the track at the State controlled mortgages, the IBRC mortgages, the Minister, Deputy Noonan, in the previous Fine Gael and Labour Party Government, permitted the sale of those mortgages - a mortgage book of 49,000 mortgages - to vulture funds. He would not publish the discount at which the mortgages in that mortgage book were sold for nor would he offer the same deal to the mortgage holders. Furthermore, even with the Minister's watered down code of conduct on mortgage arrears, those vulture funds are not covered under the statutory regulations, an aspect which is also part of the Bill my colleague, Deputy Michael McGrath, has produced.

The Government has a moral obligation to let this Bill pass Second Stage and go to Committee Stage. As previous colleagues said, when this legislation was introduced previously and when a motion was introduced in March 2015, issues regarding the illegality or unconstitutionality of such measures were not raised. The Minister, Deputy Noonan, introduced a red herring yesterday when he said that bank shares have dropped 10% because of the introduction of this legislation.

I would remind the Minister that we in a previous government had to take very tough decisions to save the banks and the financial system but, coupled with that, we brought in very strong and robust protections for mortgage holders. The Minister, during the term of the previous Government, watered them down and left the people victims of the banks. The Minister for Children and Youth Affairs, Deputy Zappone, who I congratulate on her appointment, during the previous Seanad in which I also served, supported the Family Home Protection Bill that we, as a party, put forward to afford home owners the protection they needed and deserved. This legislation would go some way to redeeming the previous Government's record on mortgages.

My colleagues have outlined the cost. Taking the example of the constituency in which I live, I bought a three-bedroom standard family terrace house in my constituency in 2006 for which I paid €580,000. That was not above and beyond the price for that type of house at the time. I was one of the fortunate ones who had a tracker mortgage. Many neighbours in my estate paid the same amount for their houses and they have their mortgages with Bank of Ireland and other lenders, which charge average variable rates of 4.5%, resulting in their repayments being hundreds of euro more than mine. That is not something any Government, Dáil or Parliament should stand over.

The Minister, Deputy Noonan, should ask himself whether he is a Minister for the people or for the banks. His track record during the past five years and during the short term this Government has been in office has proven again that he is a Minister for the banks. There is no reason the Government should have tabled an amendment to the motion for the Second Reading of this Bill. It should withdraw it, allow the Bill go to Committee Stage and refine and improve it, if needs be. People need to see action in this regard. The only action they have seen in the past four to five years has been that taken to reduce their rights as home owners.

AIB, in reducing its rates four times in the past 18 months, has seen a reduction in the number of mortgage arrears and an increase in its profits. Bank of Ireland stands over a 4.5% average variable rate, while AIB has a 3.4% rate, resulting in hundreds of euro in the difference in repayments. The banks are offering fixed rate mortgages of up to 6% and 7% for people to move out of variable rate contracts. It is ludicrous and ridiculous. The Minister needs to take a stick to the banks; it is all they understand. This legislation is a start in terms of fairness for the 300,000 plus people and families, many of whom purchased their houses between 2004 and 2007. I am not sure whether the Minister, Deputy Noonan, has a mortgage, although he probably does not have one after his tenure in this House. That may be the reason he does not understand the issues facing normal working families in this country. He has a chance now to accept this Bill and to allow it go through to Committee Stage. We can work on it together to improve the lot of mortgage holders who are paying hundreds of euro above the odds every single month.

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