Caoimhghín Ó Caoláin (Cavan-Monaghan, Sinn Fein) | Oireachtas source

Sinn Féin will support the Bill's passage through Second Stage. It seeks to establish a mortgage resolution office which would be empowered to put in place a mortgage resolution order designed to protect the family home in the insolvency process.

As of the end of March this year, 76,422 mortgages on principal dwelling homes were in arrears and 120,894 principal dwelling house mortgage accounts were restructured. Such restructuring arrangements include a switch to an interest-only mortgage, a reduction in the payment amount, a temporary deferral payment, extending the term of the mortgage and capitalising arrears amounts and related interest. In addition, lenders were in possession of 1,740 principal dwelling properties at the end of March 2017. Some 370 properties were taken into possession by lenders during the first quarter of 2017; 142 were repossessed on foot of a court order and 228 voluntarily surrendered or abandoned.

This crisis has been trundling on for many years. This Government and the previous Government have failed miserably to address the issue of distressed mortgages in any meaningful way. Instead they have relied on the banks to sort out the problem in their own way, choosing to sell to vultures or repossess the homes as they please. We do not need to look too far back to see just how despicably the banks have acted. The scandalous exposéof how thousands of fixed-rate mortgage holders were deliberately kept in the dark by their bank regarding their entitlement to move or move back to the cheaper tracker-mortgage rate shows just how rotten things were. The implications of this were huge with thousands of families struggling to pay the higher rate and many dozens of families losing their homes due to the excessive mortgage-repayment costs they faced. That is only one example.

I recognise that some initiatives have been launched by Government but not all of them have been successful. It is encouraging to note that more people are now using the insolvency process but for many families this is still an unattractive option as it does not guarantee retention of the family home. Much more needs to be done.

The programme for Government made many promises pertaining to the protection of the family home, but concerns have now been flagged that some of the proposals are unlikely to happen. This is an extremely worrying development. For example, there was a commitment to introduce legislation that would:

Establish a dedicated new court to sensitively and expeditiously handle mortgage arrears and other personal insolvency cases, including through imposing solutions, including those recommended by the new service. The hearings of this court could be held in private if requested by the debtor.

However, I understand that the Taoiseach confirmed to my colleague, An Teachta Ó Dochartaigh, that there is no sign of the mortgages special court Bill-courts (mortgage arrears) Bill which has been on the legislative programme for a considerable time.

I call on Government not to renege on its commitments. Too many people have suffered and too many continue to suffer with the stress and fear of losing the roofs over their heads. It is time for the Government to show some political will in this respect. Action is needed now.

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