Jennifer Murnane O'Connor (Fianna Fail) | Oireachtas source

It is estimated that the co-operative will have to raise at least €5 billion. If this money is to be raised through bonds, as was the case with NAMA, this will ultimately have to be guaranteed by the State. The Bill, as drafted, it is not clear on the function of the co-operative. It is unclear from the Bill whether the homeowner is activating the process or not, and how much control the home owner has in this process. That is a significant issue. There is such a lack of clarity that many issues have to be resolved. Under the mortgage-to-rent scheme, for all its flaws, the home owner must initiate the process.

This Bill is also unclear about whether the house or the debt is sold. In NAMA's case, the loans were purchased at a discount and the bonds used to fund NAMA were guaranteed by the State. It is unclear whether the co-operative will become a landlord or a landowner. For example, the Long Title refers to the possibility of the co-operative renting distressed mortgages. This again highlights the incompleteness of the Bill. In some cases the Bill suggests that home owners will have to give up their house but remain in debt. This certainly would not serve the home owner. It is unclear what the co-operative will actually own, whether the house, the loan or both. It is unclear what the homeowner is giving up. Given that the co-operative will need State support in terms of guarantees, the lack of clarity over the function of the Bill is likely to cost the State and the home owner. Evidence suggests that repossession is currently not the primary issue, it is typically the steps before that point that are causing stress among home owners.

Fianna Fáil is today bringing forward the Mortgage Arrears Resolution (Family Home) Bill 2017. We believe the Bill offers genuine, practical and constructive solutions to assist families to stay in their homes. It is far less complex and has a far more practical cost base and will not require a money message.

We support this Bill, in principle, and it is about everybody working together, getting information and making sure that people stay in their homes. We have a housing crisis. We have people losing their homes. However, I believe that Fianna Fáil, Fine Gael, the Independents, Sinn Féin and the Labour Party need to work to make sure that people will have the chance to remain in their homes. I congratulate Senator Norris and Deputy John McGuinness because I know they have worked hard on the Bill. It will take all groups working together to ensure that people and families do not lose their homes.