Aideen Hayden (Labour) | Oireachtas source

I welcome the Minister of State to the House. I do not question the bone fides of those who have proposed this motion. They have shown their concern for this issue on a number of occasions in this House. I refer particularly to Senator MacSharry. When he proposed his Private Members' Bill, we said that while we supported the theory of his proposal, unfortunately we could not support the legislation itself because it placed too much emphasis on the role of the courts in resolving these issues. Our view was that out-of-court settlements were preferable for most people.

It is important for us to acknowledge that progress has been made. The Government has been in office for just over two years. While it might not be all-singing and all-dancing, the Personal Insolvency Act 2012, which this Government introduced, is very comprehensive. It remains to be seen how the legislation, when it is rolled out, will link with the existing code of conduct on mortgage arrears provisions. Much of what is coming down the track is presenting us with challenges. The rules and procedures contained in the code of conduct on mortgage arrears and the mortgage arrears resolution process are being fundamentally overhauled. The mortgage arrears resolution targets, which require lenders to propose targets that we hope are viable, are being rolled out. The Land and Conveyancing Law Reform Bill 2013 will be passed. As I mentioned, the Personal Insolvency Act 2012 is being rolled out.

At this point, I would like to formally second the amendment, as I believe I am required to do.

Up to now, we have experienced what I would loosely call a phoney war. We could sit here all day and debate the reasons for the phoney war. Clearly, the Dunne judgment is one of those reasons. In effect, it tied the hands of lenders in seeking summary judgment for possession. There are other reasons for the phoney war. Principally, bankers and financial institutions have not been willing to face this country's serious and significant problem with mortgage debt. It is probably the greatest crisis faced by this Government and this country at the moment. I will not revisit the numbers that demonstrate the extent of that distress. There is an issue in this regard. There are reasons targets have to be set for financial institutions. It is important to bear in mind that for every borrower in this country, there is a lender. I do not believe lenders have faced up to their responsibilities with regard to the mortgage crisis. I await the day when they face up to them.

I would like to take this opportunity to raise a couple of issues, set out where some of the proposals that have been made to date stand and elaborate on what needs to be done to make progress. A debate of this nature gives us an opportunity to make positive suggestions as well as rehashing recent history. This House has considered a number of motions on mortgage arrears over the last two years. I am disappointed that the mortgage-to-rent scheme is being rolled out so slowly. I accept that conveyancing issues and other legal difficulties have arisen. I have been assured that faster progress has started to be made.

The original Cooney report proposed that a mortgage-to-lease scheme be considered as a possible solution. If such a scheme were available to banks and - potentially - the State, it would be much more cost-effective than the mortgage-to-rent scheme. I put it to the Minister of State that it should be considered. It would involve the relevant lending institution offering the State a long-term option over a property for ten or 20 years, similar to what happens under the rental accommodation scheme or the long-term leasing scheme. It would ensure the property would not have to be acquired by a housing association. I ask all parties to consider this proposal.

Much of the debate on this issue to date has focused on residential mortgages. Members know I feel very strongly about this. Some of the comments made by people such as Patrick Honohan and Matthew Elderfield have treated those who live in buy-to-let properties like second-class citizens.