Ruth Coppinger (Dublin West, Socialist Party)
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According to reports that were published in today's The Irish Timesand elsewhere, seven lenders are in breach of the mortgage arrears code that was drawn up by the banks and the Government. They are breaching the code in four areas: not seeking timely solutions, communications, fair processes, and process improvements and controls. Some of them have committed offences like seeking additional ad hocpayments from borrowers with whom they have agreements in place and making unilateral changes to arrangements without prior agreement. There was also a policy that permitted lenders to remove borrowers from the resolution process if they did not agree to an arrangement over the telephone. Given that the ordinary people of this country have slaved and toiled to bail out the banks over the last seven years, it is quite incredible that the banks are still allowed to operate in this way. Why has the Government given the banks such largesse? I suggest that Government policy is leading directly to many of the problems in the banks.

I would like to draw the attention of the Minister of State, Deputy Harris, to the only penalty that looks likely to be imposed on the banks, which seems to be that they will be written to on 30 November. There will be no 7 a.m. dawn raids like those that followed water charge protests, for example. The banks are doing what the Government has directed, which is to take back possession of properties while prices are going up. This has allowed the banks to operate in whatever way they like. The rules do not really apply. A slogan that is chanted on marches - "the banks got bailed out, we got sold out" - is very apt on this occasion. Anyone who looks at what is happening with the banks in this country will have to agree that it is true. When will the Government introduce some control over the banks, in the interests of working-class and ordinary people? Repossessions have increased by 500%. I ask the Minister of State to imagine a world in which the banks are owned and controlled by the 99% rather than the 1% - "I wonder if you can", to quote from a John Lennon song.

I suggest that rather than people being evicted from the properties they are renting, which is happening every day of the week, there should be an agreement that those people would remain in their homes. It is coming up to the first anniversary of the eviction of Violet and Martin Coyne, two pensioners who were turfed out onto the street by a receiver for Rabobank. I have been asked on numerous occasions when the Government will introduce an order to protect sitting tenants in buy-to-let properties, rather than adding to the homelessness crisis. All of the replies from the banks, including AIB, of which we own practically 99%, suggest that the bank will honour the terms of formal leases. In other words, they will evict tenants when their leases are up in a few months. Even though ordinary people are bailing out the banks, there is nothing to keep tenants in situ. The Minister of State with responsibility for housing, planning and the Construction 2020 strategy, Deputy Coffey, has said that "bringing in the rules too soon could result in property prices stalling [which] would be undesirable" and that "the falling incidence of negative equity is helping to restore banks' balance sheets". Those comments reveal that Government policy is contributing to this crisis.

Threshold and others have asked for a code of conduct for people like that.

The Minister of State might spare a thought for somebody who did get a helping hand recently from the banks, Deirdre Foley, co-founder of the property investment company D2, who has little sympathy for the Clerys workers. She would not be in the position to fire them if she had not got a write-down from the bank in her hour of need. She was struggling to cope with her company debts, estimated at €450 million, but she was given a sufficient write-down to help her trade and operate.

Frank Feighan (Roscommon-South Leitrim, Fine Gael)
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The Deputy should refrain from naming names.

Ruth Coppinger (Dublin West, Socialist Party)
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It is in the newspapers. It would be ridiculous for us to refrain from naming names that are in the newspapers.

Frank Feighan (Roscommon-South Leitrim, Fine Gael)
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The rules are that we do not name names here in the Chamber.

Simon Harris (Wicklow, Fine Gael)
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I welcome the opportunity to speak on this important issue and I thank Deputy Coppinger for raising it.

The code of conduct on mortgage arrears, CCMA, 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. It is essential that the code is fully implemented by all lenders and that borrowers are dealt with fairly in line with the code and that they can be confident that any breaches of the code will be swiftly identified and dealt with by the regulator.

The Central Bank, in its supervisory role, must ensure that the banks comply with the CCMA and take appropriate and timely actions to ensure that they do. The publication this morning of the findings of the Central Bank's themed inspection of lenders' compliance with the code is useful and timely in this regard and where weaknesses were identified by the Central Bank it is important that lenders address them immediately to the satisfaction of the Central Bank as the supervisory authority. The Government expects the Central Bank to use the powers available to it and to take whatever steps are necessary to ensure that all customers are protected. I note that the Central Bank has stated that it has the necessary powers to manage this process effectively and that it has undertaken to use its supervisory powers where compliance levels are not in line with the Central Bank's expectations.

It is essential that all lenders deal with their customers in accordance with the provisions of the CCMA and it is very disappointing when shortcomings are found. It is through the publication of the findings of such inspections by the Central Bank and rigorous follow-up with lenders by the Central Bank that any shortcomings are identified and resolved. That way we can be confident the code is fulfilling its objective of providing a strong consumer protection framework for distressed borrowers.

While obviously, and understandably, our focus is on the weaknesses found, which I and the Government see as utterly unacceptable, we should also note that the Central Bank found that the examined lenders have implemented frameworks as required by the CCMA and a number of good practices were identified that go beyond the minimum regulatory requirements. For instance, many lenders engage with borrowers and attempt to resolve arrears, even when borrowers have been classified as not co-operating by the lender and when legal proceedings have commenced.

The Government has put in place a broad strategy to address the problem of mortgage arrears. This has included an extensive suite of interventions designed to address the problem including specific Central Bank targets for the banks through the mortgage arrears resolution targets, MART, extensive recasting of the personal insolvency legislation, the mortgage-to-rent scheme and the provision of advice through Department of Social Protection-led initiatives, such as support through the money advice and budgeting network.

On 13 May last, the Government announced a number of new measures to further strengthen the framework to support mortgage holders who are in arrears. Building on action previously taken, the measures aim to increase the supports available to people in arrears and to increase the number of people availing of them. This further enhanced the personal insolvency framework, the mortgage to rent scheme and the services offered by the Money Advice & Budgeting Service, MABS.

In this context it is important to also recognise that the numbers of mortgage accounts in arrears is declining and that many home owners are reaching solutions with their lender. In its most recent statistical publication on this issue, the Central Bank reported that at the end of quarter one in 2015, over 117,000 principal dwelling houses, family homes, mortgage accounts were classified as restructured and the vast majority were meeting the terms of their current restructure arrangement.

I would like to assure the House that the Minister for Finance, I and the Government as a whole are acutely conscious of the impact of debt on families across the country and are determined to see it resolved. In these difficult circumstances borrowers must be dealt with in a fair and transparent manner and on a case-by-case basis. The CCMA is a central pillar in this regard and any shortcomings are not acceptable. The Central Bank has the powers to deal with these issues and having identified the weaknesses it is critical that it follows up in a speedy and strong manner to ensure that all lenders fully implement the CCMA to ensure that the best interests of consumers are protected.

Ruth Coppinger (Dublin West, Socialist Party)
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The mortgage to rent scheme would assist some of the people I have mentioned who are literally landing on our streets. I do mean that literally, not metaphorically. Where has it been implemented? How many banks have agreed mortgage to rent schemes? I would wager a handful in the entire country because it does not seem to be sought and I would appreciate it if the Minister of State could give me figures for that.

The Minister of State said that he is acutely aware of the impact of debt on families. When this Government came to power five years ago, one of the biggest issues facing it was mortgage debt but it has done nothing to lift that debt or to ask the banks to reduce the debt. Most people bought houses during the property bubble that were completely overpriced. They are still saddled with 30, 35 and even 40 year mortgages. The Government could have brought in rules for AIB because the State owns it. It could have brought in a policy of no evictions of sitting tenants, if it really is concerned. That policy has not been issued and I think that is because the bank is being fattened up for privatisation. That is why it has been told to purge its loan books of bad debts as soon as possible. It is now implementing rules the Government favours because it wants to sell the bank off, to privatise it, which is a real mistake.

Developers are getting write-downs from the National Asset Management Agency, NAMA, which was never intended to happen. The late Brian Lenihan and the then Taoiseach, Brian Cowen, promised that would never happen and it is happening. There is one law for the rich, the 1%, and another for the ordinary people, the 99%, who get only cutbacks in supports such as the lone parents allowance and get no bailouts from this Government.

Simon Harris (Wicklow, Fine Gael)
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Nobody has a monopoly on concern. Deputies on all sides of this House are concerned about mortgage arrears. We all see the issue in our clinics and communities but it is not fair to say nothing is being done because the Central Bank statistics show that 117,000 family home mortgages had been restructured by the end of quarter one of this year. Those are real people, some I would guess in the Deputy’s constituency and some in mine. They are engaging with their lenders and are able to get their lives and their family finances back on track. It is also true to say, however, that there is much more to be done. I take the Deputy’s point about the mortgage to rent scheme. It could be of great help but it needs to be modified. I will contact the Deputy with a note on the information she has requested on that scheme.

It is important to note the Central Bank has identified shortcomings but it has also identified good practice. It is important and right that we focus on the shortcomings. It now needs to deal with those shortcomings in a speedy manner. It has the powers it requires as it reiterated this morning. There are several options available to it if it is not satisfied that a lender is in compliance with the code. I encourage the Central Bank to act swiftly and I have every confidence that it will. The letter it has sent to seven lenders is published on its website for all to see. It sets out the shortcomings, the good practice and what now needs to happen. Mortgage arrears and debt will continue to be a priority for this Government, which wants to sort it out. I do not share the Deputy’s view on the fattening up of the banks. We have a commitment to recoup every cent the Government put into the banks so that we can do exactly what the Deputy wants to do, get it back into the taxpayers’ coffers and spend it on the crucial public services we need.