David Stanton (Cork East, Fine Gael) | Oireachtas source

I thank the Deputies for their contributions to the debate. It is important to stress that the Bill does not have implications for repossession proceedings in respect of principal private residences. Under the Land and Conveyancing Law Reform Act, the Circuit Court has been given jurisdiction to deal with repossession proceedings involving principal private residences. This Bill will not change that and will not impact on the rights of borrowers to due process and the various remedies afforded by our insolvency laws.

The Government has put in place a number of protections for borrowers in respect of principal private residences. The Land and Conveyancing Law Reform Act grants the court the power to adjourn proceedings to allow a borrower to examine the possibility of making a personal insolvency arrangement under insolvency legislation. In addition, a new court review process has been introduced under the Personal Insolvency (Amendment) Act 2015 in which a decision by a lending institution to refuse a proposal for a personal insolvency arrangement drawn up to resolve a home owner's debts, including the mortgage on their principal private residence, can be reviewed by the court.

A new nationwide mortgage arrears resolution service, Abhaile, which was launched recently provides free independent expert advice to home owners in mortgage difficulty. This innovative scheme, which can be accessed through the Money Advice and Budgeting Service, MABS, provides a home owner with expert advice from financial and legal advisers to identify sustainable solutions in mortgage arrears cases. Since its launch over 2,400 vouchers for legal and financial aid have been issued by MABS in respect of 718 principal private residences. I urge those who are worried about mortgage debt on their homes to contact MABS and start the process of putting in place solutions to their mortgage arrears which will enable them to remain in their homes.

I will briefly address the issue of rateable valuation and market value. It was the intention to commence relevant sections of the Civil Liability and Courts Act 2004, which changed the Circuit Court's jurisdiction from a rateable valuation basis to a market value basis, shortly after the commencement of the 2004 Act. This was not done because the expected roll out of the new valuation system under the Valuation Act 2001 was delayed. Following the enactment of amending legislation in 2015, I am satisfied that the conditions now exist for the commencement of those sections of the 2004 Act. A commencement order to bring them into effect is being drafted and will come into operation at the same time as the commencement of this Bill.

The Courts Bill 2016 is a short technical Bill which is designed to address the implications of the Court of Appeal's ruling in the case of Permanent TSB plc v. Langan. Its primary objective is to avoid potentially serious disruption to court business following the Court of Appeal ruling. I wish to avoid situations where proceedings already under way before the Circuit Court would have to be transferred to the High Court or where, as a result of the ruling, proceedings would have to be commenced in the High Court rather than the Circuit Court. Such situations will only lead to disruption of court schedules, delays in the proceedings and, ultimately, higher costs for the parties involved. In the absence of legislation on this issue the Court of Appeal ruling will have the effect, as acknowledged by the Court of Appeal, of depriving parties of access to local courts in the manner in which the Constitution intended.

For the information of the House, the number of mortgage accounts for principal dwelling houses in arrears fell further in the second quarter of 2016.

This marks the 12th consecutive quarter of decline. A total of 82,092, that is, 11%, of accounts, were in arrears at the end of the second quarter, a decline of 4.5% relative to the first quarter of 2016. The number of accounts in arrears over 90 days at the end of June was 57,571, which is 8% of the total, reflecting a quarter on quarter decline of 3.6%. This reflects the eleventh consecutive decline in the number of PDH accounts in arrears over 90 days. All maturity categories of arrears, including the over 720 days category, declined in the second quarter of 2016. This category recorded a fourth consecutive decline, having fallen for the first time in the third quarter of 2015. A total of 120,614 PDH mortgage accounts were classified as restructured at the end of June. Of these restructured accounts, 88% were deemed to be meeting the terms of their current restructure arrangements, the highest level since the series began. The largest increases in restructures were, again, recorded in the categories of arrears capitalisation and permanent split mortgages.

Issues relating to the protection of tenants in investment properties are not within the scope of the Bill, but I will ensure that the Deputies' remarks are made known to my colleague, the Minister for Housing, Planning, Community and Local Government, Deputy Simon Coveney, who, as Deputies know, is implementing a comprehensive housing action plan.

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