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

I move amendment No. 2:

To delete all the words after “Dáil Éireann” and substitute the following:"notes that:

— significant progress has been made in reducing the level of mortgage arrears;

— Central Bank of Ireland statistics show that the number of primary dwelling mortgage accounts in arrears over 90 days has fallen from 98,700 in September 2013 to 44,000 at end December 2018;

— the level of these arrears has now declined for twenty one consecutive quarters, and the number of accounts in arrears over 720 days has declined for fourteen consecutive quarters;

— 111,500 mortgage accounts have also been restructured and 87 per cent of these accounts are deemed to be meeting the terms of their current restructure arrangements;

— the Government has advanced and supported a range of measures which have assisted borrowers experiencing genuine difficulty in meeting their mortgage or other commitments, and which have also maintained and increased the consumer protections available to borrowers whose loans have been sold;

— in particular, the Consumer Protection (Regulation of Credit Servicing Firms) Act 2015 ensured that the Central Bank of Ireland regulatory framework continued to be available to borrowers where loans were sold and the Consumer Protection (Regulation of Credit Servicing Firms) Act 2018 now provides that the legal owners of credit must be regulated by the Central Bank of Ireland;

— all regulated entities are legally obliged to comply with the Central Bank Code of Conduct on Mortgage Arrears 2013 and the Consumer Protection Code 2012, including the provisions of chapter 8 of the Consumer Protection Code;

— it is an independent matter for the Central Bank of Ireland to formulate the codes it makes pursuant to statute, and that the Bank has amended such codes as appropriate from time to time;

— in 2018 the Central Bank of Ireland undertook a review of the Code of Conduct on Mortgage Arrears specifically in the context of the sale of loans and it found that, where borrowers engage with the process, the Code of Conduct on Mortgage Arrears is working effectively and as intended;

— the Central Bank of Ireland is of the view that in the context of loan sales, the current regulatory framework provides sufficient protections to consumers;

— there is a requirement on businesses to comply with the terms of the European Union directive on unfair terms in consumer contracts as transposed into Irish law; and

— it is important to ensure that there continues to be a functioning, strong and sustainable banking and financial system which meets the needs of existing and new borrowers and the general public, consistent with a high level of consumer protection; and

calls on the Government to:

— support and, as necessary, work with the Central Bank of Ireland as it carries out its important financial stability and consumer protection functions;

— continue to support and assist households in mortgage arrears and, recognising the importance of the family home, to maintain arrangements which will enable households to restructure unsustainable debts in a fair manner;

— keep the financial services legislative and regulatory framework under review to ensure that the level of consumer protection continues to be up-to-date; and

— continue to pursue overall prudent fiscal and economic policies that will deliver high levels of employment and positive economic development."

I acknowledge the Deputies for placing the motion, which the Government will not be supporting, before the House. Before I outline why, I note that no one in the House, including those Deputies who have proposed the motion, has a monopoly on understanding the difficulty and anxiety citizens in mortgage difficulty can face. It is an anxiety I well understand and share. I understand the challenge our citizens face when they face mortgage difficulty. In particular, I note with regard to Deputy Michael Healy-Rae's reference to the Taoiseach that anyone who has the ability to be re-elected has more than enough stock of experience and appreciation of what constituents face. For the Deputy to suggest otherwise is unworthy of him. He also said nothing had been done, which Deputy Harty also stated. I will touch on that in a moment. Deputy Michael Healy-Rae also raised the issue of why I did not support a community banking organisation and the development of such banking beyond what is there. I reiterate to the Deputy what I said on the issue before. If anyone, including the Deputy himself, is willing to raise the money to fund the idea, I am happy to look at it. However, I am not in the business of reinvesting Irish taxpayers' money into activities to create lending when we still have billions of euro absorbed in banks which I want to get back. If those who are putting this idea forward think it is such a good one, they might be willing to put their own capital on the table to make it happen. When they do so, I will be happy to sit down and look at the idea again, as I have said I will do.

I will deal now with the points Deputy Harty made. I would have hoped for some acknowledgment from the Deputy of the progress which has been made. I am sorry he could not provide that this evening. Deputy Harty said the Government was failing. It is up to the people to determine whether we are failing.

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