Darragh O'Brien (Fianna Fail) | Oireachtas source

Perhaps the Deputy Leader would update me on progress in relation to my request that the Minister for Finance, Deputy Noonan, come to the House for a debate on what the Government has termed "the local property tax", none of which tax collected in 2014 will go to the local authorities. It is important we have this debate and that the Minister, Deputy Noonan, would explain why this is the case.

The legislation introducing the proposed statutory code of practice in respect of fair pricing for the horticultural and dairy sector has been on the A list for five different sessions. As everybody knows, people in the horticultural and dairy sectors are being squeezed by the multiples and supermarkets. In Britain, there is a statutory code of practice to ensure fair pricing as much as possible for this industry. I wonder why the Minister of State, Deputy Tom Hayes, informed a group in north Dublin recently that the Minister, Deputy Bruton, was preparing legislation in relation to a code of conduct for this area when the relevant legislation has been listed on the A list five times but has not yet come before either House. I would welcome if the Deputy Leader could follow up on the matter and inform the Whip that we are ready to initiate the Bill here.

I would also welcome the Government's view on the sale of 13,000 mortgages by former Irish Nationwide which are held by the former IBRC and its view on the statement by the Minister for Finance, Deputy Noonan, that should these mortgages be sold to an entity outside this State, which is more than likely, they will be covered by the diluted code of conduct of mortgage arrears, even though it is insufficient following the changes made to it last year. I have been contacted by a number of people who are very concerned about who will purchase this mortgage book and, if it is purchased outside this State, whether they will be covered by the code of conduct on mortgage arrears. The statement by the Minister that he would expect that such purchaser would follow due procedure is wholly insufficient. I remind members that this loan book of former Irish Nationwide contains a high number of residential mortgages in arrears, the holders of which need the protection of what remains of the code of conduct on mortgage arrears. I am particularly interested in hearing at what discount it is proposed to sell this loan book. If it is proposed to sell it at a 50% discount, which I am hearing is about correct for those mortgages in arrears, why has IBRC or the entity that was IBRC not offered discounts and restructuring on these mortgages?

The Government is going to sell these to a vulture fund at a 50% discount. Would it not be preferable to offer the mortgagees, those who hold the mortgages, a discount to restructure those mortgages instead of the State selling off a loan book to try to make profit for the State? The Government is leaving these people in hock and without any protection should it be sold to any entity outside the State. I take it that AIB and Bank of Ireland will not buy this loan book. Who will buy it?

Why has the Government not instructed IBRC to restructure these mortgages properly if they are to be sold at 50% of their value? This is a really serious issue. Some 13,000 mortgage holders will be sold down the river by the Government. Has the Department of Finance looked at restructuring these mortgages and asked IBRC to give these people a discount of 40%? Instead it will be sold off to venture capitalists and other mortgage companies. This will result in a higher proportion of mortgage arrears not covered under the code of conduct for mortgage arrears. An institution buying the loan book at a discount of 50% can repossess a house and if it gets 60% of the loan value, it will make a profit.

The issue deserves a specific debate in this House. Deputy Michael McGrath has introduced legislation into the Dáil-----