Paschal Donohoe (Dublin Central, Fine Gael) | Oireachtas source

I am well aware of the concerns on this matter. In responding to questions I try to show that we also have to get to a place where the level of non-performing loans that Irish banks have is reduced. There have been several years of economic growth in our economy. People have returned to work, in no small part due to the decisions made by the Government of which the Deputy was a member. There is the potential for the country to move to full employment. For one of the largest banks to still have non-performing loans in excess of 20% on its balance sheet has very serious consequences for that bank. That is why it is trying to deal with the matter. Through the different courses of action I have outlined, and in what I seek to do by assessing the effectiveness of the code of conduct on mortgage arrears, in trying to work constructively with Members of the Dáil on legislation they bring forward, I am trying to maintain the framework that has resulted in a big reduction in non-performing loans and a significant reduction in mortgage arrears in recent years, while avoiding the huge social consequences that many forecast several years ago and which did not happen.

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