Darragh O'Brien (Fianna Fail) | Oireachtas source

Several weeks ago I asked the Leader to arrange a debate in the House in advance of publication of the new revised code of conduct on mortgage arrears. After learning the details of the revised code of conduct, the matter has become so urgent that I am proposing an amendment to the Order of Business that the Minister for Finance or his deputy, the Minister of State at the Department of Finance, Deputy Brian Hayes, come to the House to explain the Government's strategy on mortgage arrears and the thinking behind giving the banks everything they wanted in the code of conduct. I am sure most Senators have looked at the code, but, for those who have not, the context is that one in every four mortgages is either in arrears or has been restructured. The Government is now permitting the banks open season on distressed borrowers and those in mortgage arrears. It has removed the 12 month moratorium to which the banks had to adhere under the previous code of conduct. After three months, or eight months in some instances, the Government will permit the banks to go to court to seek repossession orders. That is reprehensible. One of the protections the previous Government and Oireachtas gave to borrowers was to permit banks to contact distressed borrowers no more than three times per month. That protection has been completely removed. The Government is allowing the banks to contact distressed persons who are in arrears as many times as they want. They are being allowed to call to borrowers' doors or ring them at any time of the day or night. The Government is going to push people over the edge. I would like to ask the Minister for Finance whether he understands the stress people are under and why, in God's name, he gave these discredited banks which we all know too well everything they wanted. The banks keep speaking about co-operating and unco-operative borrowers. What defines a co-operating or unco-operative bank? When do we say a bank is not co-operating with the people to whom they lent money? All the Government is requiring from the banks in the code of conduct is that they be proportionate and not excessive. What is the definition of this in the context of what is being proposed?

The Government has refused to accept any legislation from this side of the House to establish an independent mortgage appeals board or an independent office that would make a decision on the future of a mortgage or the resolution of a mortgage problem. It is allowing that decision to stay firmly with the banks. I could say much more on this subject - I thank the Cathaoirleach for his indulgence - but three minutes is insufficient time in which to do so.

That is why I am proposing an amendment to the Order of Business that the Minister for Finance or the Minister of State at the Department of Finance come to the House today to explain how this new code of conduct, agreed by the Government and the Central Bank, will help anyone in Ireland who is in mortgage arrears.