Michael Harty (Clare, Independent) | Oireachtas source

I thank Deputy Michael McGrath for bringing this Bill to the floor of the House. It is the second important Bill to be discussed this evening. The Government's intention not to oppose the Fianna Fáil legislation to bring vulture funds under the control of the Central Bank is to be welcomed. I hope this Bill will not suffer the same fate as many other Private Members' Bills during this Dáil and come to a halt on Committee Stage.

I would like to make two points. First, homeowners whose distressed loans are sold by banks to vulture funds must not lose any of the protections currently available to them. This is central to this Bill. Second, normalising the banking system by selling loans to vulture funds should not be at the expense of Irish citizens by making families homeless. I have no doubt that if these mortgages are sold to unregulated vulture funds, homeowners will be picked until their carcass is clean to the bone. These unregulated entities will do this swiftly and without compassion. Their modus operandiis quick profit. That is the reason for their existence. There should be no prevarication by this Government. It must protect as far as possible the interests of Irish citizens either by not allowing such sales or, if such sales are to be made, by ensuring they are made to regulated entities. This is critical.

The Rural Independent Group is happy to consider any amendments which the Government might table on Committee Stage but the fundamental point of this Bill should not change. Homes and mortgages should be sold to regulated entities and not unregulated entities. Also, the criteria used by the Permanent TSB, Allied Irish Banks and Bank of Ireland to designate mortgages as non-performing must be closely reviewed by the Central Bank. Many families are making honest efforts to repair their home loans yet these loans are still deemed to be non-performing. There should be a distinction between those who are making honest efforts to meet their commitments and those who are making no effort to do so, or those loans which are in respect of investment properties only. No family should be subject to homelessness owing to the sale of their mortgage to unregulated vulture funds. The banks are bleating that if they are allowed to sell off these loans this will free up money to lend to young couples who need mortgages. I do not believe this.

Not regulating these vulture funds is unacceptable and normalising the banking system by selling family mortgages is also unacceptable.

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