Marc MacSharry (Fianna Fail)

Yesterday, Irish bonds were oversubscribed to in another bond auction. The does not have much effect but does result in a mild reduction in the cost of lending for Ireland. This is significant in that it is the first time it has happened for some time. We are still the most expensive country in terms of what we have to pay, but we are moving in the right direction. It gives some confidence to international investors. The three-year bonds were oversubscribed to the extent of 2.5 times and the seven-year bonds to 2.2 times. This is significant and I congratulate those people in the National Treasury Management Agency for their efforts in that regard.

I join Senator Healy Eames in the call, which is in line with my call of some weeks ago, for a debate on innovative ways to help people who may not be mortgage defaulters at this time but who may get into difficulty given that interest rates are at an historic low but will rise inevitably, unemployment is increasing and we expect serious social problems as a result that will cost the nation a fortune. I ask the Leader to arrange a further debate on this issue. I and colleagues have been considering a number of options. One suggestion is that the Money Advice and Budgeting Service should be required to certify whether a financial institution should be permitted to proceed to seek a court order to repossess a house. In advance of granting a repossession, a series of innovative options could be considered by all the covered financial institutions. These include freezing the mortgage for a specified period, extending the term covered by the mortgage, reducing the interest rate for a period or renting back the property if it is a complete basket case.

As I stated some weeks ago, we must also address the issue of illegal money lending by criminal elements that use Don Corleone type enforcement methods. This practice is endemic in all parts of the country. Legal money lending at exorbitant rates is also a problem. A British public limited company, Provident Financial, is lending money legally to desperate households at annual percentage rates, APRs, of as high as 187%. These issues must be addressed and I ask the Leader to arrange a debate on them with the Minister for Finance. Senators will gladly facilitate the Minister in holding any such debate at his convenience.