Micheál Martin (Cork South Central, Fianna Fail) | Oireachtas source

Many thousands of people in the State right now are living in fear and with a considerable degree of anxiety following the news that the PTSB is about to offload some 20,000 mortgages to unregulated loan owners, or vulture funds as they are commonly called. These loans are to be sold to unregulated, out of State vulture funds. With one decision or one stroke, this will double the amount of such loans under the ownership of vulture funds currently.

This is not an every day, ordinary business decision of a bank. Clearly, it will be a decision that will come before the Minister for Finance's desk, if it has not already done so, in the form of a consultation briefing. It is important that in the relationship clause it is open to the Minister to respond and the banks to take into consideration the Minister's response.

By any definition this is a step change in behaviour by a majority State-owned bank which will have severe repercussions. Other banks will follow, such as with AIB's project redwood. If a mortgage is not in this bundle it could be in the next bundle of mortgages to be sold. The fear is in the almost anonymous and detached nature of vulture funds that will not respond effectively or properly, or engage with many mortgage owners, even with those who have restructured their loans.

Perhaps the Taoiseach will elaborate on why the Government did not follow the advice of the Central Bank with regard to the regulation of vulture funds. For some time prior to the enactment of the Consumer Protection (Regulation of Credit Servicing Firms) Act 2015, the Central Bank consistently advocated to close the gap around regulation for loan transferees. The Central bank said that its "preferred policy approach was for the regulation of the actual loan owners". This would have given considerable protection to people who had their mortgages transferred to other loan owners.

Will the Taoiseach indicate why the Government did not take on board the consistent position of the Central Bank, which was that such vulture funds should be regulated? The Minister will be consulted. Will the Taoiseach indicate what his response will be? The Minister should robustly advise the bank to desist from this and not to proceed with this particular sale.

More importantly, our spokesperson on finance will today be introducing legislation to introduce regulation for such vulture funds in line with the policy of the Central Bank. I ask that the Government support this constructive, effective legislation which has the potential to make a difference and to offer protection to many mortgage holders who are currently very anxious and worried about what the future holds for them.

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