Aideen Hayden (Labour) | Oireachtas source

The Central Bank has revealed that €400 million of household debt was written down in the fourth quarter of 2012 by banks, credit unions and other lenders. We do not know the breakdown of that amount, so we have no idea how much mortgage debt was written off. It is a case of smoke and mirrors with no transparency or detail.

It was also announced that a deal has been arrived at between a number of banks and other lenders, particularly those dealing with credit card debt, that will allow people to consolidate and write down debt that involves both household or mortgage debt and credit card or other forms of debt. This is to be welcomed because, up to now, there has been competition among lenders over who will get paid. Mortgage lenders are telling borrowers not to bother with credit cards, while credit card companies are seeking payment. If the new deal is successful, it will be a way for people to avoid having to go through the insolvency process.

I ask the Leader to invite the Minister for Finance to attend the House for a debate on the mortgage crisis and, in particular, how banks are dealing with it. The Central Bank has announced that it wants to see 750 cases resolved in the three months from June. My criticism of all this concerns the lack of transparency and the fact that borrowers have no idea what is on offer from which bank, for whom and in what circumstances. That lack of transparency is unacceptable. I reiterate my call for the Minister for Finance to attend this House to discuss the banking situation and, in particular, mortgage arrears.