Colm Burke (Fine Gael)

I thank the Minister for making time available to deal with this matter today. I want to deviate slightly from the issue of insolvency. The Minister mentioned that 76,000 mortgages are in arrears. I would like to ask about the problems that banks have encountered with regard to legal undertakings that have been given. I am aware that in the case of a legal practice in Dublin, there were mortgages over just three of 33 properties. Have the banks reported on the extent to which money was given out, even though all of the terms of loans are not being complied with, and letters of undertaking from legal practices cannot be honoured as a result? In the cases that arose recently, people were acting as the solicitor and as the developer - acting in the mortgage to the bank and acting for the bank. In the issue that arose recently people were acting as both solicitor and developer. They were acting in regard to the mortgage to the bank and also for the bank. As a result, the banks have run into a lot of difficulty. Have we any clear idea of the level of problems in that area and about which banks are worst affected in this regard?

I have raised the second issue previously, namely, the German system of letting properties. In Ireland we seem to have the idea we can only let properties that are fully furnished but in Germany one can rent the shell of a property. It is up to the tenant to fit it out, including fitting the kitchen. As a result, tenants get properties at much lower rents, get security for ten to 20 years and landlords remain the property owners. This would apply also to the banks, which when they have to take possession of properties do not have the responsibility for normal day to day maintenance. It is an innovative way of looking at the problems banks have when they have possession of properties and need to get income from them.