Aideen Hayden (Labour) | Oireachtas source

I agree with Senator Darragh O'Brien that the Personal Insolvency Bill 2012 is the nuclear option. It is important to remind ourselves of that fact. It is also important to remind ourselves that large tracts of Irish society will not be able to avail of the legislation. I am thinking, in particular, of public and civil servants. We should not treat this matter glibly.

There has been unbearably slow progress in the banking sector towards the implementation of mortgage arrears resolution strategies, MARS. Some covered institutions have treated not only their customers but also the Oireachtas with disdain. They demonstrated this when they appeared before the Joint Committee on Finance, Public Expenditure and Reform. It has come to my attention that one institution, the EBS, is offering split mortgages and is allowing the parking of a portion of the mortgage without charging interest on it. The EBS is distinguishing itself in this. Other institutions are not offering customers that option.

Senators who have been members of local authorities will know that local authorities offer loans as agents of the Housing Finance Agency to people on low incomes who have been turned down by two commercial institutions. These loans have, of their very nature, been given to people on the margins of home ownership. One third of these mortgages provided by Dublin City Council are in distress. Local authorities are not in a position to offer MARS style solutions to borrowers.

I ask the Leader to bring this to the attention of the Minister for Finance before the budget. A local authority cannot offer a split mortgage or extend the term of a mortgage. These people are the responsibility of us legislators because local authorities act on behalf of the Government and these options should be available to them.