Martin Conway (Fine Gael) | Oireachtas source

The Government is committed not just to dealing with the mortgage crisis but to dealing with the economy. I see this as very much a micro approach. The macro approach is being dealt with by the Minister for Finance, Deputy Noonan, and the Minister of State, Deputy Hayes, with their various initiatives in Brussels, from the promissory notes to what happened at the ECOFIN meeting the other day and through the many other segments we do not hear about that are happening in the background. The choreography and myriad of small things happening facilitate a bigger wheel and will bring results in due course.

The micro side of the issue concerns the individuals in this country who are on their knees trying to survive. This morning I had the experience of meeting a client who got a good deal from Permanent TSB. I am aware Senator MacSharry has an interest in that institution, and his father is doing great work there. The deal achieved by this individual was acceptable. It was not 100% what she wanted, but it was not far from it. Certainly, it will allow her to sleep at night, which she has not been able to do for a long time. This was my first positive experience of dealing with a bank in a long time. Perhaps we are now seeing a situation in which the banks are beginning to respond.

The Government has set ambitious targets to be met by the end of the year. While I like the idea of a report card on the Government, this issue is very much a report card for the banks as each arrangement made will help a family in trouble. I am confident the targets will be met because the banks are finally realising they have a significant responsibility here. When people are prepared to meet the banks some of the way, they have a moral responsibility and a responsibility to the country to go a long way towards meeting them. Obviously, there will be situations in which people bury their heads in the sand. When this happens, it is very difficult to know what to do. People are given every opportunity and I hope that those people who are in trouble will engage with the system. They may find, like the person with whom I dealt this morning, that things are not as bad as they seem. The banking industry is finally realising it has a responsibility in this area.

I wish to comment on the issue of buy-to-let properties. I received a letter two weeks ago from a couple who had bought three houses with money earned during more buoyant times. Now they are in a situation in which they cannot meet the mortgage repayments. The rent being received for the properties is only a fraction of what they were receiving and they are now facing financial ruin. Potentially, they could be taxed on losses. I have not come across a situation before in which a person could be taxed on losses, but it is possible this couple face that. There is an issue with regard to buy-to-let properties. During the boom, people received advice from so-called financial advisers to buy property, but they now find themselves in a situation in which these properties are a noose around their necks. This is an issue that needs to be addressed.

I believe the Government has taken this issue by the scruff of the neck. The situation has been that the banks and bankers have been slow to react and they have not played ball in the manner expected by the citizens of this country who bailed them out. Some institutions are better than others. I did not realise the CEO of AIB is in the Oireachtas today. This is good. It is important that the CEOs of AIB and all the other banks engage with the representatives of the people who hear daily what people are going through. The CEO of Permanent TSB will be in the Oireachtas tomorrow. This type of collaboration, discussion and accountability is important. However, the manner in which the CEO of another bank treated the Oireachtas Joint Committee on Finance, Public Expenditure and Reform a couple of months ago was regrettable. That aggressive type of personality and behaviour is not what is required in a time of crisis.

We are in a war. The people are in an economic war for survival. The Government is at the helm of the ship, trying to steer us through the most turbulent and aggressive waters the country has ever seen. Our mere survival was at risk a couple of years ago. Now, we can see some sort of light at the end of the tunnel and some hope of plain sailing ahead. Make no mistake, however; there are turbulent and troubled waters ahead. These will be a challenge and the situation will be difficult. There has never been a better time to be in Government, because this is a time when political leadership is required, not just from the Government, but from all sides of the House. There has been significant political leadership from all sides and I hope to see that continue. That is what the people expect of all of us. I commend the amendment to the House.