Jack Wall (Kildare South, Labour)
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Question 148: To ask the Tánaiste and Minister for Finance his views on the recent increase in the number of house repossessions that have been executed by, or on behalf of, banks and financial institutions; the number of such repossessions for each year from 2002 to 2007; and if he will make a statement on the matter. [2349/08]

Brian Cowen (Laois-Offaly, Fianna Fail)
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Recent figures issued by the Courts Service on new cases of this type entered in the High Court are provided below for the years 2002 to 2007. It should be noted that possession orders applied for are not always granted or implemented and they are not always issued against residential properties.

The Deputy will appreciate that higher levels of court proceedings for property repossessions need to be interpreted with caution, given the variety of circumstances that give rise to such cases and the fact that not all of the proceedings relate to residential property. It should also be noted that even where orders are secured some are not enforced. The number of orders granted by the High Court are a very small proportion — representing less than 0.2% — of the number of new mortgages issued in the same year.

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.

The Financial Regulator's Consumer Protection Code requires financial service providers to undertake suitability assessments before offering a product or service to consumers. In addition, the Code sets out the requirement that a regulated entity must contact the consumer as soon as it becomes aware that a mortgage account is in arrears and that they must have in place a procedure for handling accounts in arrears. In addition, from 1 January 2007 staff providing advice or selling mortgage loans must meet minimum competency requirements as laid down by the Financial Regulator.

As Minister for Finance 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.