Thomas Byrne (Fianna Fail) | Oireachtas source

I second the amendment tabled by Deputy Darragh O'Brien and I take this opportunity to endorse the comments he made yesterday.

I am seeking a debate on the subject matter of an article in this morning's edition of the Irish Examiner, which appears under the headline "Debtors protect assets in private trust". The article in question refers to a scheme being operated out of County Kilkenny which is being accessed by people throughout the country. Said scheme purports to place mortgages into a private trust, thereby removing from the banks their ability to repossess the properties to which they relate. I met one of the promoters of this scheme in Leinster House on Tuesday and, as a result, I am deeply suspicious of the scheme. The promoters charge people €250 to enter the scheme and claim that by using trust law, assets can be put beyond the reach of the banks. The individual I met informed me that the promoters had discovered a flaw in mortgage deeds which allows this to happen. As someone who is very familiar with such deeds and details relating to them, I requested information about this flaw. The promoters refused to divulge the details of the flaw to me. I was also informed that the scheme operates on a referral-only or invite-only basis. This fact is attested to in the article in today's edition of the Irish Examiner, which also indicates that 600 people have joined the scheme and paid €250 each for the privilege. The promoters actually informed me that the number of individuals who have signed up to the scheme is in the low thousands.

One interesting feature of my meeting with one of the promoters was that I was asked if I am familiar with the New Beginning organisation. I stated that I am familiar with it and that I know many of those who have been involved with that organisation in its various incarnations. I further stated that I am very proud of the work done by New Beginning and that I was glad to have worked with it in respect of a number of issues. The meeting ended when I outlined my relationship with members of New Beginning. As Members are aware, I continually raise the issue of mortgages in the House in the interests of trying to obtain answers for people. If, therefore, someone informs me that they have an answer, I want to discover what it involves. That is why I agreed to the meeting to which I refer. However, the secrecy, the fee involved, the unknown legal basis for what is being done here and the fact that the person I met clammed up when New Beginning was mentioned, have led me to reach the conclusion that this scheme bears all the hallmarks of a scam.

I urge the public to be wary of the scheme and those promoting it. I also urge the Irish Examiner and other media outlets to highlight this matter, about which I have genuine concerns. I have spoken to some experts in this field and they agree with my assessment. I compliment New Beginning which discovered a real loophole two years ago and which was involved in obtaining the relevant judgment in the Dunne case. I understand that none of the mainstream organisations assisting people who are experiencing difficulties with their mortgages endorse the scheme to which I refer.