Mattie McGrath (Tipperary, Independent) | Oireachtas source

I move amendment No. 1:

In page 9, between lines 18 and 19, to insert the following: “ “investment undertaking” includes a retail credit firm as defined in section 28 of the Central Bank Act 1997 and any other person who owns credit which is being serviced by a credit servicer as defined in section 28(2) of that Act.”.

I am very concerned about the lack of time allowed for this debate. While I know there is a big event taking place, that does not give the Government impunity to enact this Bill with such indecent haste and without teasing out the many matters. This amendment is important. The former Minister, Michael Noonan, invited the vulture funds to Ireland. It is high time that someone uninvited them and sent them home because they have caused plunder and pillage. There is an old song about plunder and pillage in Van Diemen's Land. It is unbelievable what the vulture funds have got away with at that time. They should never have been here. I will use a parallel, although I hate using it because it is very cruel. My son is a sheep farmer and when little lambs are born, grey crows and vultures come down and take their tongues and eyes savagely. The very word "vulture" is anathema to any right-thinking person. Vulture funds are not interested in supporting the Irish people or anything else.

I hope the Government will accept this amendment, although I have doubts. The amendment would ensure some bit of respect, manners and common decency are put in around the rules of engagement. Every taxpayer and citizen in this country has to do a tax return but the vulture funds are immune to all of that. Why should they be? People’s dreams are being shattered by what has happened to them. They borrowed in good faith to house themselves, buy a bit of land or go into business, which is what we need. We need entrepreneurs and people who are able to house themselves, rather than putting the law about ag lorg aid and help. They want to do this for themselves and their families and to provide a roof over their heads. Their debt is sold off by the pillar banks and other banks such as Ulster Bank - I could name all the banks - to the vulture funds for a fraction. In many cases, people wanted to pay the debt but it was unceremoniously disposed of and they were then left at the mercy of the vulture funds.

As for the Land Registry, which is located trasna na habhann, across the river, it is completely inept and totally out of order in how it deals with the proper ownership of the title of most of the places. In 90% of cases in which homes, farms and businesses are being repossessed, the Land Registry is way out of line. Barristers are going into courts on behalf of the vulture funds waving pieces of paper at the justices but the judges are not asking them whether it is legal. It is not legal. I could quote Edmund Honohan, the highly respected former Master of the High Court, in this regard. I also welcome to the House Theo McDonald who did a wonderful analysis on this issue in the McDonald report, but the Minister, who is a new Minister, does not want to hear that either. I am very disappointed.

Vulture funds are investment entities which purchase distressed debt at a discount, often from struggling companies or individuals. They then seek to profit by collecting the full value of the debt, sometimes through aggressive and unethical tactics. Credit services are intermediaries and manage these debts. There is no mercy in the courts. I have yet to see cases, except for a couple of judgments, in which these merciless vulture funds were delayed.

One of the points on which we feel very strongly in the context of this amendment is the issue of tax evasion. Vulture funds often use credit services to avoid paying taxes by operating through these intermediaries. They can shift profits offshore to minimise their tax liabilities. This deprives our country of much-needed revenue that could be used for badly needed public services. I cannot understand why the Government has na súile dúnta, its eyes closed, to this since the crash in 2009 and has not brought the vulture funds to book. Why is it beholden to them?

There is a cosy cartel of consultancy firms. The Government uses many of these firms for every kind of a report and investigation. The same consultancy firms and accountants are advising these merciless vulture funds on how to utilise tax loopholes. They are all in it together.

The ordinary people of Ireland, for whom the men of 1916, 1921, 1922 and 1923 fought in order to have democracy in Ireland, have been abandoned. People's lives are being lost. So many people have taken their own lives, so many families have been destroyed, so many marriages have broken up and there is so much ill health and so many mental health issues, it is unbelievable. The Minister is hearing this gach lá. He must be hearing it, as must his backbenchers. Yet, he comes in here and lets the vulture funds off scot-free. It is grossly immoral, unethical and unfair to allow these vulture funds to operate with such impunity.

I thank the iar-Sheanadóir, Brian Ó Domhnaill, for undertaking the research on policy, with help from Edmund Honohan and others. I also congratulate him on the sporting prowess he has shown and his recent achievements in education.

As I said, vulture funds are known for their aggressive tactics in collecting debts. They often target vulnerable borrowers using legal threats and other pressure tactics to exact payments. This can lead to significant financial and emotional distress. Think of the children. While Deputy Chambers was not the Minister for Finance at the time, there were many cases in which mercenaries from other countries came to Ireland to inflict and carry out evictions without proper legal work. We have seen their vehicles being parked in Balbriggan Garda Station. We have seen what happened in Roscommon. We have seen this all over the country. These people have no business in this country. They are not even registered security people and they are causing bedlam and injury. They are causing people to perish. We thought we got rid of those tactics when we got rid of the oppressive regime that was here for many hundreds of years.

The economic aspect is totally unchecked. The operation of the vulture funds can have a broader economic impact. By focusing on short-term profits, they can destabilise companies and economies, leading to job losses and economic instability. It is as clear as the nose on your face that this can happen. It beggars belief.

Let us look at some real-life examples to understand the human impact. Humans and humanity must be what every Teachta Dála and Seanadóir is about. The practices used are awful. For example, Pepper Finance is one of the most notorious services in Ireland. It has been involved in several high-profile cases in which borrowers have been charged exorbitant interest rates. For instance, a couple in Cork sued Pepper Finance over an excessive interest rate of 8.5% on their mortgage, which was significantly higher than the rate they would have paid if their loan had remained with the original lender. In business, I sign a lot of agreements for the purchase of vehicles. While we need finance houses to support business, if people sign an agreement with some institution, surely their contract is with it and should not be sold on to these merciless vulture funds which are here to make massive profits and do not care about the collateral damage. As I said, that is one case but there are many others.

Some 100,000 mortgages in Ireland have been sold to vulture funds, leaving families, sometimes extended families, in awful situations.

Borrowers are trapped in high-interest loans with little recourse. These "mortgage prisoners" are often unable to refinance or switch to more favourable terms, leading to financial hardship. Some 700,000 people have mortgages, of which 100,000 are with vulture funds. That is an enormous number to be with vulture funds. It is time we got rid of them. The Minister has a golden opportunity in the last hours of this dying Dáil, before an election is called, to do something meaningful for the people out there, many of whom are the enablers who provide employment or who set up their own businesses and took a punt. We need those people to take a gamble. They do not all have cosy positions in the public service. Then there are the others who tried to house themselves and borrowed and have been badly stung. They cannot get any finance from any source because they feature in the credit bureau.

There are significant gaps in the regulatory framework that allow vulture funds and their credit services to operate with minimal oversight. The lack of stringent regulations and enforcement has enabled these entities to exploit borrowers and avoid accountability. That is shocking. We are reminded of 2010, and we found out about that, but now it is 2024 and they are still exploiting the gaps and still using every kind of loophole, whether legal or illegal, as regards the land registry.

The Government's economic policies have often favoured financial institutions and investment funds over ordinary citizens. How can that be right in our so-called land of milk and honey? It is our duty as Teachtaí Dála, messengers of the people, to serve our Irish people and not be kowtowing to vulture funds, which have no interest here. They will be gone like snow off a ditch from this country when they have reaped all their gains, blood money in many cases. It is taken wrong. They have so many undertakings and they must be sorted out. The guidance notes refer to a collective investment vehicle, such as a UCIT. The amendment inserts a definition of "investment undertaking" that fits this context. It is plain and simple. It is beyond time we called these vulture funds to book and tried to save more lives and more families. They cost our health service because of the illness and the depraved manner in which they operate. The Minister's advisers are here again, and some of the big financial houses in this country are insisting that he keep this policy. They are also, on the other hand, working for these vulture funds. That is totally wrong and reprehensible. The citizens, or the borrowers, are way down the food chain. They are last, whether they be householders or businesspeople.

I know we do not have much time. I could say an awful lot more, but the message is simple. I ask the Minister to accept this amendment and, at this late stage, the horse having bolted many years ago, for the sake of the future generations of families, try to bring some order to this Wild West that has been allowed to operate here in dealing with finances. No other sector or businessperson or whatever can operate without being under the strict regime of Revenue and taxation laws. Why should we allow these people to get off scot-free?

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