Eamon Gilmore (Dún Laoghaire, Labour)
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Question 81: To ask the Minister for Social and Family Affairs the reason for the delay in reforming mortgage interest supplement. [8896/10]

Michael Noonan (Limerick East, Fine Gael)
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Question 83: To ask the Minister for Social and Family Affairs her plans to amend the mortgage interest supplement scheme; if she will make revised guidelines publically available; and if she will make a statement on the matter. [8993/10]

Seán Barrett (Dún Laoghaire, Fine Gael)
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Question 122: To ask the Minister for Social and Family Affairs the number of persons in receipt of mortgage interest supplement; the cost for same; if she will arrange for the collection of figures on the number of persons who apply for mortgage interest supplement; and if she will make a statement on the matter. [8933/10]

Mary Hanafin (Dún Laoghaire, Fianna Fail)
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I propose to take Questions Nos. 72, 81, 83 and 122 together.

The initial purpose of the mortgage interest supplement scheme was to provide short-term support to people who have difficulty meeting their mortgage repayments due to changes in their employment circumstances and whose means are inadequate to meet their basic day-to-day needs. The goal of the scheme, within the overall social welfare framework, was to ensure that people do not suffer unnecessary hardship due to loss of employment and can, in the short term, maintain their sole place of residence while being unemployed. Mortgage interest supplement only covers the mortgage interest payments in respect of an eligible person's sole place of residence. It is a means tested payment and other qualifying criteria apply. Just over 15,400 people are in receipt of mortgage interest supplement at present. Given that there were 8,091 recipients in 2008, there has been an increase of 91% over the last 12 months. The levels of expenditure on the scheme for the years up to December 2009 and December 2008 were €60.7 million and €27.7 million respectively. Therefore, there has been a 119% year-on-year increase in the outturn.

The assessment for the mortgage interest supplement scheme provides for a gradual withdrawal of payment as hours of employment or earnings increase. Those availing of part-time employment or training opportunities can continue to receive mortgage interest supplement, as long as they satisfy the standard means assessment rules. Claim details are generally electronically recorded when entitlement to mortgage interest supplement is refused. As the practice can vary between community welfare areas, statistics for the number of people who applied for and were refused mortgage interest supplement without an appeal are not fully reliable. Community welfare officers have been reminded on many occasions to record electronically details of the receipt and status of all claims. Requests to change operational procedures should be viewed in the context of the increased demands being placed on community welfare officers in the current economic environment.

The review of the administration of the mortgage interest scheme is progressing. 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 because they are unable to meet mortgage interest repayments on their sole place of residence. The review group includes representatives of the community welfare service, the Departments of Finance, Social and Family Affairs and the Environment, Heritage and Local Government and 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 including the cap on hours of employment. The review is also considering whether alternative approaches to achieving the scheme's objectives are warranted in light of recent changes in the economic climate and the mortgage market. The full review should be completed in the coming weeks. The ensuing report will be available for publication in April 2010. Following consultation with the community welfare service, guidelines on specific and immediate operational issues for the community welfare officers operating the scheme have been finalised. The guidelines were issued in June 2009 and are available on the Department's website, www.welfare.ie.

Olwyn Enright (Laois-Offaly, Fine Gael)
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I am interested in the Minister's statement that "community welfare officers have been reminded" to record information on the number of applications that are granted or refused. Having spoken to community welfare officers and those representing them, I understand they have been collating this information for years-----

Mary Hanafin (Dún Laoghaire, Fianna Fail)
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Not all of them.

Olwyn Enright (Laois-Offaly, Fine Gael)
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-----but have not been asked for it. When will we see this information? It is not enough to remind the officers to compile it. As the Department is paying this money, it has a duty to provide details on who is applying for it, who is getting it and who is being refused it. When will we get such information? I do not know how the scheme can be reviewed in the absence of information on those who are being refused under it. Not only are we waiting for reports from the review groups established by the Minister and her colleague, Deputy Ryan, but we are also waiting for the Taoiseach to establish the high level independent group. In the meantime, will the Government consider easing the mortgage interest supplement criteria so that those who may benefit from the various reviews, if anything is ever done on foot of them, do not lose their homes while the various reports are being collated and examined? People are being refused mortgage interest supplement at the moment. They are losing their homes because they cannot negotiate anything with their banks. When the review is produced in due course, it will not suffice for us to tell such people we might have been able to save their houses if something had been done in the meantime.

Mary Hanafin (Dún Laoghaire, Fianna Fail)
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Two distinct groups are considering the matter at present.

Olwyn Enright (Laois-Offaly, Fine Gael)
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Yes.

Mary Hanafin (Dún Laoghaire, Fianna Fail)
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The first group is the mortgage interest supplement review group, which is based in the Department of Social and Family Affairs. Its report, which will be finalised over the next couple of weeks and is to be published in April, will give us specific guidelines on our own scheme. The second group, which is examining the wider issue of home ownership and protection of homes, etc, is led by the Department of Finance. As I said earlier, that group is charged with considering the wider issues of shared equity and rental, etc. We should not ignore the fact that-----

Olwyn Enright (Laois-Offaly, Fine Gael)
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What about the third group the Government promised to establish?

Mary Hanafin (Dún Laoghaire, Fianna Fail)
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That is a separate group. The Departments in question are working on the two groups. We should not ignore the fact that a moratorium of 12 months has been established which covers all institutions covered by the Financial Regulator, including the sub-prime lenders. This means that when someone gets into difficulty in paying their mortgage, as long as they engage with the bank, no action will be taken in repossessing their homes for 12 months. They can still do this through MABS too.

Olwyn Enright (Laois-Offaly, Fine Gael)
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The record starts from the first missed payment.

Brendan Howlin (Wexford, Labour)
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Allow the Minister to reply.

Olwyn Enright (Laois-Offaly, Fine Gael)
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What about those who missed their payments 12 months ago?

Mary Hanafin (Dún Laoghaire, Fianna Fail)
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It is 12 months from the first time they went into arrears. As long as they are engaging-----

Olwyn Enright (Laois-Offaly, Fine Gael)
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Yes, but that could have been 12 months ago.

Mary Hanafin (Dún Laoghaire, Fianna Fail)
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The moratorium was only for six months until last week.

Olwyn Enright (Laois-Offaly, Fine Gael)
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People are still losing their homes in the meantime.

Mary Hanafin (Dún Laoghaire, Fianna Fail)
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We must put this in perspective.

Brendan Howlin (Wexford, Labour)
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Please allow the Minister to reply. I will call Deputy Enright again.

Olwyn Enright (Laois-Offaly, Fine Gael)
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The Minister should go down to the courts in the morning to see what is happening in the area of mortgage arrears.

Mary Hanafin (Dún Laoghaire, Fianna Fail)
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People who are genuinely engaging with the banks and financial institutions are not losing their homes. The Government is anxious that the agreements in place with the Financial Regulator, the Irish Banking Federation and the financial institutions are designed to ensure people are left in their homes.

Róisín Shortall (Dublin North West, Labour)
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The Minister expects the review to be published at Easter. However, we were promised it for last Easter. This is another example of a scheme that is simply not meeting the current needs of those who look to it for support. It does not reflect the real-life situation with which people are faced.

The ridiculous 30-hour rule means that, irrespective of a family's income, if one member of the couple works 30 hours or more, the family is automatically precluded from the assistance. Apart from this rule, what else is being considered in the review? Is the Minister contemplating restricting the scheme any further? Some homeowners facing difficulties with repayments cannot avail of the scheme to assist them. While we are waiting for the review, will the Minister set down specific guidelines for monthly limits? In the absence of specific guidelines, community welfare officers are basing payments on the existing rent supplement limits. Given what has happened to rents recently, rent limits are completely out of line with what is happening with mortgage repayments. As there is a real gap in the area which means many homeowners are refused assistance, will the Minister set down guidelines for monthly assistance payments?

Olwyn Enright (Laois-Offaly, Fine Gael)
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Another reason community welfare officers are turning people down is because they claim the mortgage was too high in the first place. What guidelines has the Minister given to community welfare officers to make that decision? From figures I have from around the country, it seems the assistance is decided arbitrarily. Whether the officers have the qualifications to determine what was too high is questionable. This must be examined, particularly while we are waiting for the Minister to report on the review.

Mary Hanafin (Dún Laoghaire, Fianna Fail)
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It would be inappropriate for me to pre-empt the findings of a report that will arise in a month by setting out new guidelines. It is more appropriate to wait for the report to be published. It is examining the 30-hour rule, the trend in the administration and costs of the programme, the impact of the code of practice on mortgage arrears and on mortgage interest supplement and the impact of mortgage interest supplement on how the banks are reacting to clients in arrears. It will also examine the relationship between the 12-month moratorium and the mortgage interest supplement. Our aim is to support as many people as possible, not restrict mortgage interest supplement. This year, over €60 million will be spent on the supplement.

Olwyn Enright (Laois-Offaly, Fine Gael)
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Yet people are still losing their homes.

Mary Hanafin (Dún Laoghaire, Fianna Fail)
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The scheme is designed to enable people to stay in their homes. However, when granting such an amount, it is reasonable to see if it could be afforded in the first place or, more particularly, in a year when they are back in employment.