Averil Power (Fianna Fail)

I welcome the opportunity to speak on this very important issue, particularly for many families throughout the country. I thank Senator Keane for acknowledging the work done by the previous Government on this issue. The Minister of State appeared to accept that the introduction of a moratorium on repossessions has meant only a small number of repossessions have been carried out. This has given policymakers a breathing space to work out a better long-term framework, while offering an immediate response to widespread concerns that thousands of people would lose their homes overnight. I welcome the proposals in the motion in this regard.

The previous Government also established an expert group on mortgage arrears and personal debt. The group has provided policymakers with a range of options which have worked internationally. I am pleased to note the interest shown in this matter by Senators on all sides. The issue before us is not party political. All Senators will know families who are under pressure and will have family members, as I do, who have lost their jobs or had difficulty paying their mortgage. As Senators Byrne and MacSharry noted, it would be great if legislation proposed by the Fianna Fáil Party was to secure cross-party support. If this Bill were to become the first legislation to secure cross-party support, it would send out a signal that Senators are moving beyond party politics and working together to address the issues affecting the daily lives of citizens.

On a related issue, I am concerned about the substantial level of waste associated with the mortgage interest supplement. Under this social welfare payment, the State subsidises interest payments if a person cannot pay his or her mortgage. Paying interest on social welfare recipients' mortgages to banks is not a good long-term solution. The scheme, which was introduced when few people had difficulties paying their mortgage, has mushroomed in recent years. I ask the Government to introduce a new mechanism requiring banks to offer mortgage holders alternatives, including payment holidays. The mortgage interest supplement is not an efficient use of taxpayers' money.

A problem faced by people struggling to meet their mortgage repayments has been brought to my attention. Families in arrears of €30,000 or €40,000 face eviction and the loss of their home. While the numbers involved are relatively small - the moratorium, as I noted, has been effective - the families in question, particularly those with children, are under major pressure. I understand some local authorities will not permit people in such circumstances to apply for social housing on the basis that they are private homeowners, albeit in a notional respect given that they have an unpaid and unpayable mortgage. We must have coherence between national and local authority policies to ensure no one falls through the gaps as a result of poorly thought out regulations at local level which do not reflect the great work being done at national level. I ask the Minister of State to consider the points I have raised.