Michael McGrath (Cork South Central, Fianna Fail)
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4. To ask the Minister for Finance his plans to announce new measures to address the mortgage arrears crisis; his views on the issues currently being examined to improve the way mortgage arrears cases are dealt with; and if he will make a statement on the matter. [17819/15]

Michael McGrath (Cork South Central, Fianna Fail)
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I understand an announcement will be made next week as regards the mortgage crisis and that new measures will be announced. I look forward to that. The purpose of this question is to have a debate on the nature of the changes that we need in dealing with the mortgage crisis. For me, the single key issue is to ensure that the final word in the restructuring of a mortgage is by somebody who is objectively independent. That must be the fundamental change that is required in terms of dealing with mortgages in distress. I look forward to hearing what the Minister has to say.

Michael Noonan (Limerick City, Fine Gael)
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I thank the Deputy for his question. As the Deputy is aware, the Government has put in place a broad strategy to address the problem of mortgage arrears and family home repossessions. The primary focus of this strategy is to support those home owners in difficulty with their mortgage repayments and, in so far as possible, to avoid repossession of the family home.

The Central Bank of Ireland's code of conduct on mortgage arrears sets out requirements for mortgage lenders dealing with borrowers facing or in mortgage arrears on their primary residence and provides a strong consumer protection framework to ensure that borrowers struggling to keep up mortgage repayments are treated in a fair and transparent manner by their lender and that long-term resolution is sought by lenders with each of their borrowers.

Where a borrower engages with his or her lender, a sustainable restructure arrangement to address his or her mortgage arrears situation is put in place in the majority of cases. The Central Bank's most recent quarterly release on residential mortgage arrears and repossessions, that is, for quarter 4 of 2014, indicates that almost 115,000 restructure arrangements have been put in place.

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A key focus of any forthcoming initiative from the Government will be to ensure that distressed borrowers are fully informed about appropriate supports, how to access them and how these can help. Many borrowers can find solutions through the options offered by the Insolvency Service of Ireland, ISI, and the Government will ensure that the personal insolvency process is as fair and effective as it can be and that the objectives as set out in the Personal Insolvency Act are realised as much as possible. My colleague, the Minister for Justice and Equality, and her officials are actively preparing amendments to the legislative framework for personal insolvency. This is aimed at enabling the Government's objectives to be met. The aim is to ensure that more people in distressed debt access the available mechanisms than has been the case to date.

Where a mortgage in arrears is deemed to be unsustainable by the lender, the mortgage to rent scheme administered by my colleague, the Minister for the Environment, Community and Local Government, Deputy Kelly, may be a viable alternative and enable families to remain in the family home. His Department is examining the possibilities for more throughput via this mechanism.

The effective management of the mortgage arrears issue is an issue that remains under continual review. More concerted action can be undertaken by the banks to assist customers in arrears. As the Deputy is aware, the Taoiseach announced that the Government was considering a range of options to support the existing framework and to improve the uptake of personal insolvency solutions. Given the importance of the issue, his Department is co-ordinating the response across various Departments and Government agencies and I anticipate that a detailed announcement will be forthcoming shortly.

Michael McGrath (Cork South Central, Fianna Fail)
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I thank the Minister. We need a greater throughput on the issue of mortgage to rent. Fewer than 100 cases have been completed. The process needs to be revamped, streamlined and made more efficient. We need a clear definition of what a sustainable solution is from the point of view of the borrower and we need consistency in its application. Personal insolvency practitioners, PIPs, need to be more available via a publicly funded panel of PIPs to persons who are dealing with debt. We need those solutions that are working to be deployed. The most popular is one of the least effective, namely, arrears capitalisation. We need consistency in the way split mortgages are treated.

I will revert to my initial point. Above all else, we need the final say in the restructuring of a person's mortgage to be taken out of the hands of the bank and put in the hands of someone or something that is independent, be it the Insolvency Service of Ireland or a court of law. Perhaps the Minister will address this issue and confirm the accuracy of media reports to the effect that the Government is planning changes along these lines so as to dilute the banks' veto at a minimum or, ideally, to remove it.

Michael Noonan (Limerick City, Fine Gael)
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When we entered into office, we quickly put a range of options in place so that banks and lenders could interrelate with people who were in arrears and devise solutions that would enable the latter to remain in their homes while continuing to pay all or part of their mortgages. There was a menu of solutions, but we realised that there was no one-size-fits-all solution. Some options would suit one borrower while other options would suit another borrower. By and large, this approach has been successful, with 115,000 mortgages reconstructed. There are more mortgages reconstructed than there are in arrears.

Going down the scale of difficulty, however, there is a residue of mortgages that the menu of options is not addressing or seen to be addressing. We are returning to the issue to propose new options, one of which is to amend the insolvency Act so that something along the lines of what the Deputy has suggested can be put in place. I expect the Minister for Justice and Equality to bring her proposals to the Government shortly.

Michael McGrath (Cork South Central, Fianna Fail)
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That is a change that we would warmly welcome. Taking the final decision out of the hands of the banks is something for which we have called for a considerable period. Be it a court of law or the insolvency service that would have the final decision-making power on objective grounds, based on an analysis of a person's repayment capacity and the available suite of options, with a view to keeping the family in its home if possible, that must be the core objective underpinning the Government's strategy for dealing with mortgage arrears. I call on the Minister to do this because the figures are frightening. More than 100,000 restructurings have been put in place, but we still have 110,000 accounts in arrears. As the Minister knows, under the targets programme, the figures show that the banks have proposed 30,000 so-called solutions that involve the loss of the family home, with 16,000 of those under the heading "Concluded". While that many houses have not been repossessed, if there is not a fundamental shift in thinking and in how mortgage arrears are dealt with, there will be a major ramping up of enforcement activity and the loss of family homes. It is in the country's interests to avoid that situation if possible.

Michael Noonan (Limerick City, Fine Gael)
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I accept the Deputy's sincerity on this issue. No one has a monopoly on the knowledge about how to resolve this issue. It has proven difficult internationally. When people lose their jobs and fall into arrears, they do not have the wherewithal to service their mortgages, so one must devise solutions to keep them in their homes. It is the Government's policy that people remain in their homes. Most of the suite of options to which the Deputy referred are designed with that end result in mind. We are adding to the suite. The Minister for Justice and Equality will bring her proposals to the Cabinet shortly, but other proposals are also being considered, particularly through the Department of the Environment, Community and Local Government.