Michael D'Arcy (Fine Gael)

Having a house or property repossessed leaves a scar on the Irish psyche. The number of repossessions is low compared with the number in the United Kingdom. In 2008 there were 40,000 house repossessions in the United Kingdom, but that number climbed to near 80,000 in 2009. I have been unable to find the figures for 2010. In Ireland the number of repossessions is low; it is not even up to the hundreds. It is important, therefore, to put the question in context.

No Member of the Oireachtas could give the banks credit for what they have done, but having dealt with them on behalf of individuals in serious financial difficulty, my experience is that the main banks are adhering to the code of conduct. The sub-prime lenders ran amok and gave loans to people who never had a possibility of repaying them. These lenders are flying in the face of the commitment given by this and the previous Government that people will be given every opportunity to outlast the financial difficulty they face. They are being allowed to get away scot-free.

On 25 July the High Court heard the case of Start Mortgages Ltd. v. Gunne. It seems to be the case that in some circumstances the banks are not allowed to repossess property. I have only seen a brief outline of the case, but case law is catching up on us fast. I am sure the Attorney General will advise the Minister and the Department on whether the legislation needs to be amended, but in this case it could potentially be appealed to the Supreme Court. We will await the outcome of that case.

I do not know if this Bill would be of great benefit. If I thought it would be, I would be the first to stand up and support it strongly. However, I do not see how it would help us in the here and now when the banks are not forcing people out of their properties, yet circumstances could change. There is anecdotal evidence of a logjam and that at the end of the two year process provided for in the code of conduct the banks could start a flood of repossessions, but I do not see that happening, as they have acted responsibly. Some people acted irresponsibly when taking out loans and I question whether we should enact laws to allow them not to pay for the property they bought and signed for. Some will be caught because we cannot save everybody. The previous Government insisted on saving all of the banks and that has been shown to have been a poor decision for the country. What we must try to do is ensure we do the best we can for most people, but we cannot save everybody.