Pearse Doherty (Donegal South West, Sinn Fein)
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2. To ask the Minister for Finance his plans for additional measures to tackle the ongoing mortgage crisis and the repossession crisis, including through legislative and policy changes. [40616/15]

Pearse Doherty (Donegal South West, Sinn Fein)
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I object in the strongest possible terms to the decision to rule out of order a number of questions my colleagues and I had tabled to the Minister. It makes a farce of the House that elected Members are being prevented from asking him questions related to the ongoing IBRC investigation, including the role played by the Department and when the Minister became aware of the difficulties. He can step out on the Plinth and anyone with a membership card for the National Union of Journalists or media accreditation can ask him the same questions, while democratically elected Deputies are not entitled to ask them in the Chamber. The rules are an absolute farce and members of the public see them as such.

My question asks what additional measures, including legislative and policy changes, the Minister plans to introduce to tackle the ongoing housing and repossession crises. This issue has not gone way, despite the fact that we are in the dying days of the Government's term in office. What, if anything, does it intend to do to deal with the crises?

Michael Noonan (Limerick City, Fine Gael)
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On the Deputy's first point, neither I nor the Department rules any question out of order. Questions are ruled out of order by the Ceann Comhairle on the advice of his office.

The Government has made significant efforts to deal with the issue of mortgage arrears. Central Bank data for the second quarter of 2015 which were published on 2 September show just how much progress has been made. The number of principal dwelling home mortgages in arrears continued to fall in the quarter, marking the eighth consecutive quarter of decline and a 22% reduction since the second quarter of 2014. In addition, the Central Bank data show the impact made when borrowers engage with their lenders. Almost 120,000 principal dwelling home mortgages were classified as restructured at the end of the second quarter of 2015, meaning that families can, by working with their financial institutions, find a mechanism to make their mortgage commitments affordable. Of the restructured accounts, more than 86% were deemed to be meeting the terms of their current restructure arrangement.

The Deputy will be aware of the code of conduct on mortgage arrears which provides a strong consumer protection framework for co­operating borrowers to ensure they are treated in a fair and transparent manner by their lenders. Last May the Government also announced further measures to help indebted borrowers and increase awareness of and access to the insolvency framework. Building on action previously taken, the measures include the reform of the personal insolvency framework to give the courts the power to review and, where appropriate, approve insolvency deals that have been rejected by creditors. I understand my colleague, the Minister for Justice and Equality, Deputy Frances Fitzgerald, expects to sign a commencement order later this week to bring the court review provisions of the Personal Insolvency (Amendment) Act 2015 into effect.

In addition, the role of the Money Advice & Budgeting Service, MABS, has been enhanced. Representatives of MABS and the Insolvency Service of Ireland are now present at court sessions to offer support and advice to borrowers who are the subject of repossession proceedings.

Pearse Doherty (Donegal South West, Sinn Fein)
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I am not sure if the Minister is aware of this, but the crisis has not gone away. In the dying months of the Government's term of office, 98,137 people are in mortgage arrears. Croke Park could not hold the principal of all of the households where the mortgage on the family home is in arrears. Reports indicate that 4,440 requests for repossession were made to the Courts Service in the first nine months of 2015, of which 3,638 were related to family homes. The number of repossession orders granted is also increasing. In 2013 the figure stood at 244. By 2014 it had increased to 644 and for first nine months of 2015 stood at 1,088. These figures reflect an increase of more than 400% in two years and refer solely to orders that have been granted. Individuals and families have also been pressed to sign on the dotted line, thereby surrendering their homes voluntarily because they do not have any other option. The weakening by the Government of the code of conduct on mortgage arrears and its introduction of repossession provisions within the framework of the Land and Conveyancing Law Reform Act allow the banks to do what they are doing. What does the Minister propose to do to protect the 3,638 individuals who have their cases before the courts knocked back every so often and are in fear of losing their family homes? What does he propose to do to protect the 98,000 families who are in mortgage arrears?

Michael Noonan (Limerick City, Fine Gael)
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I thank the Deputy for raising this issue. I fully agree that the position was little short of a disaster. The Government of the day decided that the sole engine of growth in the economy would be construction and development. It incentivised construction activity through an assortment of tax breaks. People paid too much for buy-to-let properties and domestic homes. There was no connection between the real economy and the amount of money paid for houses and people got into dreadful difficulty. This was not the fault of purchasers. If a couple with two children living in an apartment need a house, circumstances force them into paying the going rate. Nobody ever suggested this problem would be solved quickly. However, 120,000 mortgages have been restructured and 86% of the people involved are complying with the terms of the restructuring arrangements. We move on.

During a debate on this issue some months ago - I believe it was before the summer recess - Deputies predicted that thousands of evictions would take place. They have not materialised, although many cases are before the courts and subject to continuing adjournment. In that regard, the Minister for Justice and Equality is signing the order to give effect to the provisions of the Personal Insolvency (Amendment) Act 2015.

The representatives of MABS are attending in the courts. MABS is advising people who are before the courts to avail of the new insolvency arrangements and to come to an agreement through insolvency law. That is the latest development. The Minister will have it in place within the week.

Pearse Doherty (Donegal South West, Sinn Fein)
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There have been thousands of evictions. As I said to the Minister, a total of 1,088 orders were granted in the first nine months of this year, and the number is going to increase. Let us be clear about it: this figure is going to increase before the end of the year.

The Minister is probably the only person in the House who believes that voluntary surrenders are indeed voluntary. Voluntary surrender amounts to the banks saying to mortgage holders that they should sign up and hand over the house or else the bank will take them to court, take the houses from them anyway and they will have other bills on top of everything else in future. That is what voluntary surrender is about. There is no question of giving up the family home being the best option for families. Thousands of people are losing family homes and the number is increasing dramatically. There has been a 400% increase in the past four years.

The Minister's analysis in terms of how we got here is grand. The question is what we are going to do now for these families. For example, in June 2012, the Minister introduced the approved housing body mortgage-to-rent scheme, a scheme that was supposed to solve many of the problems. Since then, only 119 households have availed of the scheme. That amounts to a little over 0.1% of all families in mortgage arrears at the moment.

These issues can be addressed. The Joint Committee on Finance, Public Expenditure and Reform produced a report in June 2014 with numerous recommendations. How many of these recommendations has the Minister introduced? I welcome the fact that the Government will reduce the bankruptcy term from three years to one year. However, we have taken the Government kicking, dragging and screaming to the reality that this needs to be done. Again, it will be done before the end of the year. There is no urgency to deal with these families in severe mortgage difficulty who are looking for the Government to assist them. The Government continues to assist only the banks in this regard.

Michael Noonan (Limerick City, Fine Gael)
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Everyone agrees this is a very difficult problem. It almost looked as if it was intractable at the start of our period in government. However, because we assessed the situation and provided a menu of possible solutions for restructuring mortgages, it has worked pretty well. A total of 120,000 mortgages have been restructured, which is well beyond the halfway point of mortgages in arrears. We can see the progress being made in new structuring month by month. During the past five or six months, we have begun to see an end in sight. Some of the measures have been suggested by Members while others have come from outside advisers. However, the last block causing concern in this House was the issue of evictions and repossession orders.

Some Members have met Mr. Brendan Burgess. I read an article by him in the newspaper last week. He wrote of how he had heard there were strange practices among the courts in the midlands and he went to see for himself. It is an interesting article. He said there were four repossession orders but three of them were for houses that had been abandoned. The people had emigrated and there was no track of them. They were not represented in court and they did not appear in court.

What we have done now is provide an alternative. In the next week, there will be a legal alternative to repossession. At the moment, it is informal. Judges do not want to give repossession orders and the banks do not want to press. However, there will now be a route, with the advice of MABS, through the new insolvency arrangements in order that new arrangements can be arrived at, this time, through insolvency law.

Michael Kitt (Galway East, Fianna Fail)
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Before I call the next question, I wish to clarify a point. Deputy Doherty raised an issue. If the Ceann Comhairle or I rule out questions, it is because they do not comply with Standing Orders. That has to be taken up with another committee of the House.