Martin Conway (Fine Gael) | Oireachtas source

I agree with Senator Hayden's reflections on the banking conference that is taking place.

I note that the Personal Insolvency Bill, when enacted, will require that a person with a distressed mortgage must first engage in a mortgage arrears resolution process. A code of conduct on same is being established by the banking federations. A problem with the code is that a statement of financial assessment consisting of 110 questions must be filled out. One borrower with broadly similar circumstances to another could fill out the form but the result would be different. One may be given the facility of interest-only or a break in his or her mortgage, whereas another could be forced to engage in a voluntary sale scenario. Effectively, the banking sector is completely delinquent when it comes to dealing with these situations. In my office I have met people with broadly similar financial circumstances who have been given completely different scenarios after undergoing stress tests and assessments that were conducted by a bank.

If we want to get the banking sector right we need to wake up to its antics. We need to drag the banks in here kicking and screaming. It is quite clear that the banking sector is incapable. No matter what conference is taking place it is incapable of producing a uniform code of conduct and action. I want to see the representatives of the banking industry here. Let them sit in the ministerial chair and explain what they are doing to help people. Instead of the banks helping people to get out of their difficulties they are driving people over the edge.