Mary White (Fianna Fail) | Oireachtas source

I welcome the Minister, Deputy Bruton, to the House. I would like to respond to the Government's spring statement in the context of the truth about the lives of people in Ireland today. Last week, I organised a public meeting on the mortgage and debt crisis, at which there were many outstanding speakers, including Ms Noeline Blackwell from FLAC and Mr. William Prior from the Phoenix Project. During that meeting, some shocking truths came to light. I am sure that the Minister, in terms of his constituency work, is aware that people are frantic with worry about their personal circumstances. Many of the people who attended the meeting did so because they needed help. They also expressed huge appreciation of the work being done by FLAC and the Phoenix Project.

The cost of renting continues to increase. As people are now opting to rent rather than buy, this means there is no security of tenure for those wishing to set up a family home. During the period of irresponsible banking, 30 year mortgages were given to people in their 50s. This means these people will paying mortgages into their 80s. These are the types of issues raised at my public meeting. The personal consequences of debt to individuals and families is enormous. Stress is a major factor in understanding the response pattern of those who are struggling with multiple debts, which is now a fact of life for some people. Not alone do people have large mortgages, but they have mounting household bills, including water charges and property tax, car loans and credit card debt. Each mortgage holder has their own story to tell. Any increase in mortgage interest rates will result in a worsening of their situation.

One of the main issues of concern was the purchase by vulture companies of mortgages, leading to huge distress, uncertainty and anger as banks take losses but refuse to listen to or accept offers from mortgage holders. Solutions are designed to help banks at significant cost to families. During the meeting, people spoke with great passion and anger about the Government's failure to listen to them. It was said that there are people going without food, many of whom are ashamed to admit their mortgage problems. People believe the Government is turning its back on them while at the same time presenting itself as the poster boy or girl of Europe in terms of recovery.

How can we speak about spring statements on recovery and plans for the future when the Government is not facing up to the reality of the present? I acknowledge that the Minister, Deputy Bruton, has put his heart and soul into his portfolio. There is no doubt about that. Hundreds of thousands of people have emigrated over the past number of years since commencement of the recession. While I accept that unemployment has decreased to 10% and that it is expected to reduce further into the future, 160,000 people have been out of work for more than 12 months. This represents a major social and economic challenge, which will not be solved by the JobBridge scheme alone. Long-term unemployment can lead to de-skilling and result in people becoming detached from the labour market. Avoidance of long-term unemployment is important to the achievement of a reduction in the overall unemployment rate. The experience of other countries facing high unemployment in the 1980s was that long spells of joblessness increased the probability of permanent skill loss and an exit from the labour force, thereby increasing unemployment.

Foreign direct investment is treated with kid gloves. As we all know, every tax incentive possible is provided in this regard. The multinationals want only to locate in large urban areas where there is exceptional telecommunications and transport infrastructure while indigenous companies operate in every corner of Ireland. We must ensure a level playing field between indigenous industry and foreign direct investment. I may not be adequately articulating the point I wish to make on this issue. The Centra store in Killorglin and small business in Border counties such as Monaghan must be given the same status as foreign direct investment. I know the Minister will understand the point I am trying to make. This issue is not being properly addressed. While much help is being provided to indigenous industry there are many instances in which this is factious. While everything is packaged well for the multinational, the small and medium-sized enterprise sector gets only a bit of this and a bit of that. I am not in saying that being disrespectful of the Minister because as I said earlier he has put his heart and soul into his portfolio. It would be remiss of me not to say that.