Olwyn Enright (Laois-Offaly, Fine Gael)
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Question 70: To ask the Minister for Social and Family Affairs the number of persons in receipt of mortgage interest supplement for each of the past four years; the cost of same; and if she will make a statement on the matter. [9235/10]

Mary Hanafin (Dún Laoghaire, Fianna Fail)
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The mortgage interest supplement scheme provides support for people who have difficulty meeting their mortgage repayments and whose means are insufficient to meet their needs. The scheme provides a short-term income safety net within the overall social welfare system to ensure that people do not suffer hardship due to loss of employment. A supplement in respect of mortgage interest only may be paid to eligible people who are unable to meet their mortgage interest repayments in respect of a house which is their sole place of residence.

The number of persons in receipt of and the cost of the mortgage interest supplement scheme for the last four years is as follows: at the end of 2006 there were 3,420 recipients of mortgage interest supplement and the cost of the scheme was €7.87 million; at the end of 2007 there were 4,110 recipients of mortgage interest supplement and the cost of the scheme was €12.19 million; at the end of 2008 there were 8,090 recipients of mortgage interest supplement and the cost of the scheme was €27.67 million; and at the end of 2009 there were 15,120 recipients of mortgage interest supplement and the cost of the scheme was €60.69 million.

There are currently just over 15,400 people in receipt of mortgage interest supplement, compared to 8,091 recipients in 2008, an increase of 91% in just over 12 months. Expenditure for the years ending December 2009 and December 2008 was €60.7million and €27.7 million, respectively, a 119% increase year on year in terms of outturn.

A review of the administration of the mortgage interest scheme is in progress. The main purpose of the review is to examine how the scheme can best meet its objective of catering for those who require assistance on a short-term basis, where they are unable to meet mortgage interest repayments on their sole place of residence.

The review group includes representatives from my Department, the community welfare service, the Departments of Finance, Environment, Heritage and Local Government, together with a representative from the office of the Financial Regulator. The group is examining trends in programme and administrative costs, the impact of the Financial Regulator's statutory code of practice on mortgage arrears on the mortgage interest supplement scheme and legislative and operational issues arising, including the cap on hours of employment.

Olwyn Enright (Laois-Offaly, Fine Gael)
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The answer to my next question is probably contained in the balance of the reply. When is the review group likely to report? The Minister will be aware that last week the Joint Committee on Social and Family Affairs launched a report on indebtedness. Some of the groups who contributed to that process said that much of the work has been completed and there is concern that the review group will in effect be re-examining the wheel rather than making decisions and issuing conclusions.

A commitment was made to establish a high level independent expert group. Is this a separate body from the review group and is the Minister or her officials on that group?

Mary Hanafin (Dún Laoghaire, Fianna Fail)
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My officials.

Olwyn Enright (Laois-Offaly, Fine Gael)
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The biggest concern is the timescale for this report. The Minister has stated there has been an increase of 91% in the numbers in receipt of mortgage interest supplement and in my view this increase could be the same next year if action is not taken in the meantime. When will we see results from the interdepartmental group that has been formed?

Mary Hanafin (Dún Laoghaire, Fianna Fail)
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I am expecting the report in April. I have met with some of the members of the group to discuss the issues I wanted to ensure were being examined, for example, the cap on employment. They advised me they expect to produce the report in April.

Olwyn Enright (Laois-Offaly, Fine Gael)
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Is this the interdepartmental group or the mortgage interest supplement review group?

Mary Hanafin (Dún Laoghaire, Fianna Fail)
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The mortgage interest supplement review group because this was a specific scheme. I have also asked the group to examine another matter. The moratorium now in place was last week extended to 12 months instead of six months. This means that a person engaging with his or her bank will be protected from any legal action being taken against them for 12 months from the date of arrears arising. I have asked the group to look at the question of whether mortgage interest supplement should be paid in that first 12 months or whether it would be better to hold the mortgage interest supplement for a subsequent 12 months. It is a case of ensuring that people receive the full benefit from the moratorium, from what the Financial Regulator and the banks are doing and also from social welfare assistance.

Olwyn Enright (Laois-Offaly, Fine Gael)
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It seems we are talking about two different groups. How does the mortgage interest supplement review group and the Minister and her Department fit into the interdepartmental group which was announced by the Minister for Communications, Energy and Natural Resources, Deputy Eamon Ryan? I would assume the Minister is a member of that group rather than her officials as it is a high level group involving Ministers. How does this process fit in and when will that group report? April is still two months away. I am concerned that this will be held up while we are waiting for the mortgage interest supplement review which has been going on now since the Minister has been in power.

Mary Hanafin (Dún Laoghaire, Fianna Fail)
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If anything the mortgage interest supplement review will be published ahead of the other report which is looking at the wider problem of indebtedness and the issues which have also been examined by the joint committee, such as equity and taking houses and renting them back. It is considering the wider issues relating to home ownership and other forms of debt such as personal debt.

Olwyn Enright (Laois-Offaly, Fine Gael)
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Is the Minister a member of that group?

Mary Hanafin (Dún Laoghaire, Fianna Fail)
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Senior officials are members of the group but Ministers have not as yet sat down together but this will happen.

Olwyn Enright (Laois-Offaly, Fine Gael)
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Has the Cabinet discussed it now that the group has been announced?

Mary Hanafin (Dún Laoghaire, Fianna Fail)
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It has been discussed at Cabinet but not as a separate group. We have also discussed the issues at the economic sub-committee. The issues have been raised and discussed in two different fora-----

Olwyn Enright (Laois-Offaly, Fine Gael)
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Yet not in the forum which was meant to discuss them.

Mary Hanafin (Dún Laoghaire, Fianna Fail)
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The Cabinet is a forum for doing this as also is the economic sub-committee. The issues have been discussed at those levels.