Martin Mansergh (Tipperary South, Fianna Fail)

That might be the Senator's point of view but the Government commissioned the report, has received it and will deal with it with due process. That will take place very shortly. I do not propose to express personal views on the matters covered by that report. I am sure the Minister will make a statement in that regard next week or, at the latest, in the following week.

With regard to fixed mortgages, a contractual arrangement was entered into by the parties. A contract provides legal, commercial certainty. We need banks to get back to operating on commercial investment if the investment being put in by the taxpayer is to be protected. There is also the question of protecting our international reputation. If one systematically interferes with commercial decisions, it sends a bad signal to international markets. Without in the least denying the difficult social and financial problems referred to by Senator Twomey, we must be a little clear-headed about what we are doing. For that reason I do not accept the notion put forth by Senator Ross that we should ride roughshod in all directions over the banks that still have independence. At the same time there are clear issues relating to lending to small businesses, providing mortgages and remuneration, on which action must and will be taken. In the case of remuneration, I am not in a position, and do not intend, to pre-empt the precise position the Government will take. It is fine in a Seanad debate to adopt an "off with his or her head" position, but Governments must act responsibly when dealing with sectors. They must also act ruthlessly from time to time. Government is not just about striking attitudes.

The issues of repossessions and mortgage arrears were raised. The Senator will be aware that a statutory code of practice on mortgage arrears has been published by the Financial Regulator. Under this code, where a borrower is in difficulty the lender will make every reasonable effort to agree an alternative repayment schedule and will only commence legal action for repossession after 12 months from the time arrears first arise, where the customer continues to co-operate reasonably and honestly with the bank. To be frank, that is in the bank's self-interest, apart from any altruistic or societal point of view. With the fall in the price of property I cannot imagine that repossession would be anything other than a last option, from a purely commercial self-interest point of view.

The banks have assured the Government that in the normal course of events they will make every effort to avoid repossessions, as has been evident from the low level of repossessions by them to date. A percentage increase on a very low base can seem very large but the level of repossessions to date has been small. To use a historical analogy, if there was that level of evictions taking place we would be reading all about it in the newspapers and hearing about it on "Morning Ireland". There is also support for mortgage lending. The recapitalisation package includes a commitment to increase lending capacity for first-time buyers by 30%. Of course, the fall in house prices presents opportunities for people trying to get on the property ladder. On balance, for some people property might be more accessible now than previously.

Senator Doherty mentioned that Sinn Féin had put down a question about prefabs in schools. Presumably, the question was put down for reply by the Minister for Education and Science and the Minister supplied the information. The idea that the Minister does not know the information he is including in his reply does not appear to be very sensible.