Paudie Coffey (Fine Gael)

I thank Senator Fitzgerald for sharing time and welcome the opportunity to contribute to the debate. In the short time available I will try to be a voice for those who are not heard, namely, the most vulnerable who are the targets of the callous cuts contained in the budget. I am especially opposed to the unnecessary cut in the blind person's pension. Given the small number who receive it, I am sure the minimal savings made from the measure could easily have been found elsewhere.

The cut in carer's allowance is a major setback for those who care for members of their families and loved ones in their own homes and save the State a substantial amount of money. I concur with previous speakers on the budget's impact on young people. The cuts do not give them hope or send a message that they have the support and solidarity of the Government as they try to survive the recession.

I propose to focus on the issue of mortgage arrears and house repossessions. Yesterday we learned about a high profile case involving a couple from Ferrybank in Waterford which is in my constituency, both of whom lost their jobs in Waterford Crystal last year. They invested almost €70,000 of their savings in purchasing a house and took out a mortgage with a vulture finance house, Stepstone Mortgages. The first line of the company's remortgage application states: "Stepstone mortgages offers a broad range of products developed specifically to address the needs of those who might otherwise have difficulty gaining a mortgage". It is obvious from this statement that the company is preying on the vulnerable and those who aspire to owning a property. It obviously works in the subprime market.

Stepstone Mortgages purports to be a caring company. A document setting out the company's complaints procedures states: "We aim to provide a friendly and efficient service to our customers and it is our policy to ensure that all your concerns are dealt with fairly and promptly". The couple who took out a loan with the company lost their jobs and fell on hard times. They have a son with special needs and their only income is a carer's allowance and jobseeker's allowance. When they found themselves in difficulty last year, they immediately wrote to Stepstone Mortgages but did not even receive a reply. What regulation is in place to stop these vultures preying on families and driving them out of their homes?

We learned of this despicable case yesterday. The family in question have been given a six month stay before they must leave their home. This is not good enough in this day and age. The owner of Stepstone Mortgages is Lehman Brothers. Company documents state: "Stepstone Mortgage Funding Limited is a company registered with the Companies Registration office under Registration number 428955 and is a wholly owned subsidiary of Lehman Brothers International (Europe)". Lehman Brothers, one of the world's largest banking institutions, declared bankruptcy in 2008. We now see the knock-on effect on ordinary people.

The Government bailed out the banks under the National Asset Management Agency but is failing to help those who are most vulnerable, including those who are losing their homes. Will it help people under serious financial pressure? Will the Minister assist those who are being brought before the courts by banks and driven out of family homes? The high profile case to which I have referred is only the tip of the iceberg. Thousands of other families and couples with young children are under similar pressure and their voices are not being heard. The Government thought outside the box in establishing the National Asset Management Agency and must do so again with regard to young families in financial difficulty. It should find an alternative mechanism to help these vulnerable families remain in the family home. This family tried to mediate with the bank, offering €800 per month to remain in the family home, which most would consider a reasonable offer. However, the bank refused, although we should not refer to it as such, as those involved do not deserve the term; they are vultures who would not mediate or accept an offer to allow the family to remain in their home.

There will be many more cases like this. We must find a mechanism to allow people to survive the recession. We must give them time to deal with the huge arrears they face. We must engage with these institutions. If this cannot be done in retrospect, we must introduce strong regulations to ensure these vultures cannot come into the country, put people to the pin of their collar, take their money and then drive them out of their homes. As these homes cannot be sold, I do not know what the bank, Stepstone Mortgages, is gaining by putting the family out. They have offered to rent it from the agency but this has not been entertained. We have a serious problem that is causing serious social unrest in communities. It must be addressed.