Jimmy Harte (Labour)

We should not examine the history of what has happened but what we can do about it practically. As with any problem, sitting down with the person affected is a big step. Organisations such as MABS should be given more support or resources. The last place a young couple with mortgage difficulties wants to go is back to the bank that gave them the money in the first instance because the bank's first duty is to itself and the shareholders. The bank will try to screw the couple again in some other way by getting the last penny from them.

The motion deals with a solution based on the Scottish model. I appreciate the Opposition's point about a cost to the State but ultimately, the State will have to pick up some part of the cost because we do not have a choice. If interest rates increased unilaterally throughout Europe, an increase of 2% or 3% would knock most people over the edge. We should, therefore, give more resources to MABS and get people talking to the banks through an intermediary that can help them get over their difficulties.

Many difficulties are caused by people having large personal debts other than mortgages, such as credit card debts, car loans or credit union loans. The combined value of such debts can amount to twice the value of the mortgage. We must consider both types of debts together. If many mortgage holders paid off their personal debts, their mortgages would not be a problem.

Negative equity is never a problem unless one needs to sell one's house. Many people have no notion of moving in this climate. If they could repay their mortgages, they would be quite happy. What is happening, however, is that they are being dragged down by other personal debts, such as car loans, credit card loans and other term loans.

We must not allow people to get into a position where they feel their houses could be repossessed. This is the ultimate fear for any family. No parent wants to tell his children that they must leave their home because he cannot afford to pay the mortgage. While members of the family may be working hard and still have a job, they may not be able to keep their house. We must consider ways of helping couples psychologically so that they will know there is somebody to help them in their distress. We all know the cliché, "A problem shared is a problem halved". We must be both practical and compassionate when we speak to people in the position I have described.