Larry Butler (Independent)

I call on the Deputy Leader to raise the issue of mortgage arrears and default in mortgages which has now become a very serious problem. We must start to deal with that problem. I have been waiting on the Government report - we are getting bits and pieces of it - on what it intends to do about the problem. It has laid down some ground rules such as the one that someone cannot be removed easily from their house but that will not solve the problems we have with these people. Over 300,000 people are in negative equity but only 40,000 of those are finding it difficult to pay their mortgage. I suggested in the report that went to the Government that we should ask the banks to take at least 25% of the equity of people who are having difficulty paying their mortgages. That would reduce their payments and defer the negative equity until such time as the house was sold. That is an important point.

Matthew Elderfield suggested that we should examine the current position for debt forgiveness and so forth and also our bankruptcy laws, which are outdated. If one files for bankruptcy here one is bankrupt for 12 years. The period in America is three years, which allows people get back into business again where they may be able to pay their debts. Once someone is bankrupt in this country they can never pay their debts.

It is important that we have a special meeting to deal with these issues and approaching budget time is the right time to have it. If we do not have that these people will be passed over again and we will find a difficulty during the coming year, and that will become more serious. The problem will not go away. I ask the Deputy Leader to have a special meeting in that regard.