Michael Finneran (Roscommon-South Leitrim, Fianna Fail)

I am talking about repossessions. This is an emotive issue and there are many cases in the courts. Nevertheless, there are not many housing repossessions and many such cases relate to farm machinery etc. There is a mix of cases. The information available to us is that there is a limited number of housing repossession cases. There is an increase in the number of people who are getting into problems with arrears. The rate has increased by approximately 15% or 20% and will probably rise further because of people losing their jobs. The information is that lending institutions are dealing with people and rearranging their finances. We have made it very clear to the banks — representatives were in two weeks ago — that repossession should be a last resort and they should address the matter. The borrower must address the issue also by engaging at an early stage.

I got advice towards the end of last year that no property can be repossessed for two years but I do not believe in that principle. If that is followed, nobody will engage as they approach the end of that period. It is important for us to advise people to engage at an early stage and work out a system if possible.

Yesterday I listened to a radio programme while travelling in the car and I found that people on fixed-rate mortgages are having difficulties. I immediately asked the regulator to give a report on this because there is a variation between what one lending institution is charging for a breakage and what another charges. Some institutions have no breakage fee. There should be some uniformity on the matter. Some people were in circumstances where they believed it was a good idea to go into a fixed mortgage and they are now paying 3% more than somebody on a variable rate. An opportunity to switch to a variable rate can be very expensive as in some cases people are asked for €15,000, €16,000 or €19,000. Different figures were given.

The code of practice is there with regard to repossessions. I do not have the complete figures before me but I will make them available. They deal with the matter up to the end of 2008 and there may have been some increase in the first months of 2009. We do not know what that will be.

With regard to the leasing scheme I mentioned, I find it hard to understand why some local authorities are not promoting or availing of the scheme. Such authorities may nevertheless have 150 or 200 people on the housing list. It is not appropriate for authorities to act in this way. This was a Government decision implemented by me and it is not a matter for authorities to pick and choose from schemes. It is more important that the housing sections of local authorities avail of the Government schemes that are aimed at taking people off lists. The long-term leasing scheme has enormous potential.