Thomas Pringle (Donegal, Independent) | Oireachtas source

I take this opportunity to extend my sympathy to the families of Shaun Harkin, Daniel Scott, John Harley and Mícheal Roarty on their tragic loss at the weekend. Everybody, across the country, feels very strongly for them and I pass on my condolences.

I support this legislation which stands in stark contrast to the position Fine Gael has maintained since it came to power, that of taking the side of vested, private sector interests over the interests of ordinary people in this State. Since Fine Gael came to power, vulture funds have fast become a normal feature in the economy. Distressed mortgages are now regarded as a commodity, which are bundled up in new financial products and offered as fresh pickings for vulture funds making their way through the economy at the invitation of the Government. Fine Gael continues to open up the market to include a wider net of homeowners vulnerable to vulture fund takeovers.

A new low has been reached. The Government and those with vested interests in the sector have been doing their best to make out that vulture funds are a sign of a healthy, functioning economy. So much spin has been spun that when the Central Bank's report on the credit servicing funds was published before Christmas, the Government and key players in the industry, including the Central Bank, used the same report to speak positively about vulture funds. They made out that the vulture funds are not only good for the economy but were better than the banks for those with distressed mortgages. Either the banks have reached a new low in the country or spending has reached a new high. Either way, we are in sorry times if vulture funds are better than banks because the banks are bad and vulture funds are worse.

The existence of vulture funds in our economy is a symptom of a complacent Government prioritising private sector interests over the interests of ordinary people. It is also a symptom of a banking system collapse and a system that has failed to provide a service to its people. Banks, through incompetence and prioritisation of a select few, have developed a situation where vulture funds could easily move in. The recession was used by the Government and banks to transfer the responsibility of loans to other entities beyond the radar of the Central Bank regulations. This is no doubt done on purpose because it suits Fine Gael to shirk its responsibility for financial hang-ups from the recession and place them on another entity. For that reason, those of us in opposition, who have defended the rights of homeowners, have consistently called for greater regulation of credit financing firms. That is why I support the Bill.

The Bill aims to put on a statutory footing the original voluntary code and ensure the terms of the original mortgage and the way in which they deal with arrears remain the same. However, the Minister has already ruled out putting the mortgage transfer code on a statutory footing, defending the stance by saying consumers are already fully protected. I have long believed the role of traditional pillar banks, as we know it, is over. They are no longer functioning for everyday people and have instead protected the interests of a select few. This is not taking into account recent scandals which are too many to list. For that reason, it is worthwhile considering alternative banking models and considering the role of credit unions which will work on behalf of people. A capital-rich credit union business could easily replace a foreign vulture model with €14 billion on deposit. The credit unions could take on distressed mortgages from banks and work directly with homeowners to find long-term, sustainable solutions. That is a solution that would benefit people and that is not what the Minister is interested in.

The problem of vulture funds will not go away any time soon. In an alarming new proposal, a European Commission directive aims to develop a secondary market for non-performing loans which would expand the distressed mortgage market and increase the role of vulture funds in the economy. It will also restrict the right of EU member states to impose their own regulations on vulture funds. Inevitably this will undermine the rights of borrowers and consumers and ultimately homeowners. Instead of voluntary codes, we need to see a complete ban on the role of vulture funds in the mortgage and housing sector but apparently the EU always works on our behalf.

See this speech in context