Dan Neville (Limerick West, Fine Gael)
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Question 80: To ask the Tánaiste and Minister for Finance if he has received reports of growing numbers of cases of repossession of houses; and if he will make a statement on the matter. [29700/07]

Brian Cowen (Laois-Offaly, Fianna Fail)
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The Financial Stability Report 2007 recently published by the Central Bank and Financial Services Authority of Ireland (CBFSAI) points out that there are no firm indications of a significantly higher level of mortgage arrears in the banking system. The report notes that although the rate of non-performing assets on mortgage credit has picked up slightly over the last year or so, this increase has occurred from historical lows over recent years and the level remains relatively low in overall terms.

In this context, reports of a higher level of court proceedings for home repossessions need to be interpreted with caution, given the variety of circumstances that give rise to such cases and the very small proportion of housing loans involved.

Unfortunately, a small minority of borrowers develop debt problems but house repossession is generally a last resort for lenders. I understand that member institutions of the Irish Banking Federation (IBF) have voluntarily adopted a Code of Practice on Mortgage Arrears and a Code of Practice for Personal Customers. These include provisions for helping customers in financial difficulty.

I have consistently highlighted the need for responsible behaviour by both borrowers and lenders and in particular the need to factor into their financial decision making the effects of potential future changes in economic and financial conditions.

The Money Advice and Budgeting Service (MABS) which falls under the remit of my colleague, the Minister for Social and Family Affairs, is a national, free, confidential and independent service for people in debt, or in danger of getting into debt. MABS offices throughout the country work with people in order to assist them with their financial planning and budgeting for the future.

In relation to MABS' resources I would point to the fact that the provisional outturn figure for 2007 is €4.1m higher than the corresponding figure for 2006 and that the recently published Pre Budget Outlook (estimate) contains a figure of €17.7m for MABS for 2008. The Programme for Government supports further development and enhancement of the Money, Advice and Budgeting Service.