Brian Ó Domhnaill (Fianna Fail) | Oireachtas source

I welcome the opportunity to debate this issue. Is ceist fíor thábhachtach í seo do phobal na tíre, go háirithe do na daoine a bhfuil morgáistí acu agus iad anois i droch áit de bhrí nach bhfuil siad in ann na billí atá orthu a íoc. I was looking at a couple of figures when Senator Colm Burke was speaking and at the time of the last general election, approximately 6% of all household mortgages were in arrears of 90 days or more. Today 12% of all household mortgages are in arrears of 90 days or more which is a 100% increase in arrears. What has been done since? Promises made before the election seem to have dissipated since then. Nothing has been done to force the banks to write-down some of the debts. Some of the banks are actually restructuring because it makes economic sense for them to do so. However, there has been a lack of decisive measures taken by the Government to deal with this issue.

Just over 90,000 people are in mortgage arrears - people who are struggling and to whom Senator Norris, among other Senators, referred. These people are suicidal. There was a debate on the national airwaves last week in which Mr. Ben Dunne, someone with whom I have not always agreed, spoke passionately and on behalf of the people. Some banks are putting pressure on people. I spoke to someone at a clinic last evening who the banks were telephoning at 8.30 p.m. and 9 p.m. It is time the Government brought in guidelines so that banks must act responsibly and must assist rather than frighten customers. Some people are on the brink of suicide as a result of this issue.

I am not trying to play any political games because we are all in this together, whether in opposition or not. The fact is that it is two years since the last general election and there has been a 100% increase mortgage arrears. They have not been dealt with. Senator Colm Burke was right that the mortgage arrears issue is linked to the economy. Let us look at the economy and at what was inherited. Davy Stockbrokers outlined that in the last quarter of 2012, 50% of Irish mortgages were in negative equity while many owner occupier loans were in arrears of 90 days or more. It outlined in that report that negative equity was not the driving factor in regard to mortgage arrears and that the key factor was labour market developments, in particular unemployment and long-term unemployment.

The unemployment crisis has not been addressed. A promise was made before the last general election that 100,000 jobs would be created by 2015 but we are losing approximately 1,000 jobs per week. The economy is broken down into three areas, namely, foreign direct investment, the agrifood sector and the domestic economy. Let no one make a charge that when in government, Fianna Fáil did not establish the foreign direct investment economy. Who developed Food Harvest 2020, a template document which is driving the economic resurgence in the agrifood sector? It certainly was not the current Government. It inherited and supported it but it did not produce it. In fact, the Minister for Agriculture in the North is going to use it as a template to develop the agrifood sector there. The third area that is causing all the problems in regard to mortgage arrears is the domestic economy, which is dead. People are not spending; they are trying to pay their bills. There is no money moving in the domestic economy. If one speaks to any retailers, small or large, they will say that. It is only the Government that can boost or bolster the domestic economy but it has not done so. That is why we have the difficulty of job losses, in particular in the retail sector, and of mortgage arrears. The domestic element of the economy is not being dealt with.

I refer to the proposals in the insolvency legislation. We heard about the fracas in the Judiciary over the past 24 or 48 hours. One of the reasons it is showing a lack of confidence in the current Government is the manner in which proposals are being brought forward under the insolvency legislation, which has been agreed by the banks. The Government sat down with the banks before talking to the national Parliament about this legislation. The judges have been side-tracked in this process while others, including county registrars, have been included and part of their salaries will be paid by the banks so that the desired outcome - that is, home repossessions - is achieved. That is exactly what is happening. The Government is facilitating the banks by ensuring the people making the decisions are on the side of the banks. It is absolutely disgraceful.