John Gerard Hanafin (Fianna Fail)

I ask the Leader, during the debate on the banking crisis, the difficulties with liquidity in the market place and the involvement of the Government, that we pay particular reference to how arrears are handled within the banks and how repossessions are handled. Having worked with a financial institution for 17 years, it became apparent that it is very bad business for banks to be involved in repossessions, not only because of the human cost, but ironically because of the financial cost as well. There are legal costs, maintenance costs for the house, security costs and the cost of selling it off at a much discounted rate.

However, there are other options. Some banks stay away from repossessions as a policy. It makes good business sense to do so. These other options include a holiday from payments, equity interest in the house or some other method which would allow the people to live on in the house while they are getting over their difficulties. Now that the Government has taken on the responsibility to ensure that the banks have liquidity, we have a responsibility for any people who have had their homes repossessed. This proves the point that the worst possible option is often the most expensive. With our immediate interest in the banks, we should ensure that repossessions are the very last option undertaken by any of the banks, not just because it is wrong, but because it is bad business.

Last week, Fine Gael put party politics aside in the national interest, and I would expect nothing less.