Timmy Dooley (Clare, Fianna Fail)
Link to this: Individually | In context

Question 38: To ask the Minister for Finance if he has to date made any decisions on the recommendations of the Keane Report or on any other measures designed to assist distressed mortgage holders; if he will give an outline of the timeline for action on measures to assist distressed mortgage holders; and if he will make a statement on the matter. [34400/11]

Michael Noonan (Limerick City, Fine Gael)
Link to this: Individually | In context

As indicated previously, the Government is acutely aware of the increasing financial stress that some households are facing arising from difficulty in meeting their mortgage commitments. It was for this reason that the Government requested an inter-departmental group to consider further necessary actions to alleviate the increasing problem of mortgage over-indebtedness. As the Deputy is aware, the group's report has now been published and it is still the subject of a detailed and very worthwhile debate in this House.

However, progress has already been made in response to acting on a number of the recommendations of the inter-departmental report and work has commenced across a number of Departments and agencies. These will build on the measures already in place to assist mortgage holders such as the MARP process and the revised Code of Conduct on Mortgage Arrears. The inter-departmental report identified reform of personal insolvency law as a critical measure to tackle mortgage distress and the Minister for Justice and Equality has now undertaken extensive work on the development of a Bill to bring forward the necessary legislative provisions in order to modernise the law in this regard. This is being advanced as a priority matter.

The Minister for housing and planning has also commenced work on the implementation of two mortgage-to-rent schemes in line with the report's recommendations. The Minister has indicated that the schemes will operate on a pilot basis initially and that work is now well advanced with a lender and an approved housing body to make the pilot schemes operational as soon as possible.

My own Department is undertaking a process of direct engagement with banks on the development of voluntary approaches by mortgage lenders and, in addition, the Central Bank has also asked mortgage lenders to produce detailed mortgage arrears resolution strategies and implementation plans as a matter of urgency for submission by the end of November.

This House is continuing its debate on the inter-departmental report and the Government has stated that it will consider and take account of the many contributions made, both inside and outside the House, to this debate in its ongoing efforts to address the problem of mortgage difficulty. Once the Dáil debate has concluded I will, following assessment of the points raised, be bringing proposals to Government on next steps including an implementation mechanism. This will enable the recommendations of the inter-departmental report to be progressed in a co-ordinated fashion in order to provide effective and meaningful solutions for those borrowers that are facing difficulties in meeting their mortgage commitments.

Michael McGrath (Cork South Central, Fianna Fail)
Link to this: Individually | In context

I thank the Minister. His closing remarks implied that the Government has accepted the recommendations of the Keane report. What is the status of those recommendations? Has the Government formally made the decision to accept in full or in part the recommendations of the Keane report because the Minister referred to progress being made on a number of fronts implementing the recommendations of the report? With one in eight mortgages in real difficulty we can all agree that this is an area of the highest priority and we need to see the Government coming forward as quickly as possible with a comprehensive announcement of the package of measures it intends to bring forward as a policy response to the crisis following on from the Keane report. When does the Minister hope to come forward with a Government decision and an announcement in this House on the steps he intends to take following the Keane report?

Michael Noonan (Limerick City, Fine Gael)
Link to this: Individually | In context

All Deputies opposite and the Deputies on this side of the House, together with Deputy McGrath, urge that urgent action be taken in this instance. While the Keane report was put before the House for the subject of debate and for information purposes without the Government taking decisions, it was self-evident early in the debate that there was common ground on a number of issues and the Government began to proceed with those. First, there must be new bankruptcy and insolvency legislation. Second, there is merit in back-stop arrangements where somebody who is about to lose their house can enter into an arrangement where they can continue to live in that house. The Minister for housing has initiated a number of pilot schemes and made considerable progress on that. It is also common ground that circumstances differ between one household and another and that there must be a range of intervention instruments.

What we intend to do now, rather than hold up affairs, is proceed as I have indicated, take into account suggestions made by the Deputies opposite and many colleagues on the Government side, take an implementation strategy to Government at an early date and announce that, and then proceed to implement in line with the implementation strategy.

Michael McGrath (Cork South Central, Fianna Fail)
Link to this: Individually | In context

Will the Minister clarify whether he expects that we will have a public announcement by the Government on the mortgage crisis and the Keane report in advance of the budget on 6 December? If there are measures that flow from the report and Government decisions that require a budgetary decision, those would have to be decided upon prior to that date.

Michael Kitt (Galway East, Fianna Fail)
Link to this: Individually | In context

Thank you, Deputy. I must call the Minister because we are out of time. There are Deputies offering but I cannot call them today.

Michael Noonan (Limerick City, Fine Gael)
Link to this: Individually | In context

Work is proceeding and the lack of an announcement has not inhibited the work, as I have outlined. I am planning to make an announcement before Christmas but whether that is before or after the budget I cannot say. It is more likely to be in those weeks between the budget and the Christmas recess.