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

They are related. We are a country and we are an economy that has gone through a number of years of employment growth and income growth. A number of our banks still have a level of non-performing loans that is very high versus the European average. We went through many years in which Opposition speakers, I and many in this House criticised the fact that we either did not have an independent bank regulator or, if we did have one, that it did not have enough power, and if it did not have enough power, that it was not using it. That is now in place and that has consequences. One of the consequences of this is that our regulators, led by and represented by the Central Bank of Ireland, are saying that banks, particularly at a time of relative economic recovery and stability, need to do more to make sure that balance sheets are safe.

As Minister for Finance, I understand the need for that to happen but I also understand that those who are in difficulty, who are in distress and who find themselves facing grievous worry about their future because of the level of debt they have, need protection and to be treated fairly as well. The 2015 Act, the 2018 Act, the Land and Conveyancing Law Reform Act 2013, the current one that is being revised at the moment and the code of conduct on mortgage arrears have all contributed to a significant amount of mortgage restructuring to alleviate our citizens from difficulty.

I will continue to work with those who want to be constructive on this to see if there are ways in which we can continue to get that balance right. Those who are in difficulty need to be and must be treated fairly. We will look and I will continue to look at ways in which this could be done, but let us acknowledge what has happened, let us acknowledge the progress that has been made, and let us acknowledge that we need to find, in a fair way, ways to ensure that our banks can meet the needs of today and of tomorrow.

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