Joan Burton (Dublin West, Labour)
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Question 80: To ask the Minister for Finance the steps he will take to ensure that there is not a surge in home repossessions upon the expiration of the 12 month moratorium agreed with Allied Irish Banks and another bank (details supplied) as part of their recapitalisation schemes; his views on the level of mortgage arrears here and its evolution; and if he will make a statement on the matter. [27991/09]

Brian Lenihan Jnr (Dublin West, Fianna Fail)
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My Department continues to monitor the situation in general, and especially with the recapitalised banks and the banks under the Guarantee. The Government has the objective of ensuring that the rate of home repossessions should remain at its present very low levels and will seek to achieve this through the terms of the Statutory Code of Conduct, specific commitments under the recapitalisation scheme, the direct financial supports under the Supplementary Welfare Allowance scheme and the support of the Money Advice and Budgetary Service.

The Code of Conduct on Mortgage Arrears published on 13 February 2009 builds on the existing voluntary Code of Practice issued by the Irish Banking Federation and incorporates a requirement for the lender to wait at least six months from the time arrears arise before taking legal action. Bank of Ireland and AIB have each committed that they will not commence court proceedings for repossession of a principal private residence until after twelve months of arrears appearing, where the customer continues to cooperate reasonably and honestly with the bank. It should be noted that the twelve months commences when the arrears first appear and is not limited to the dates of the recapitalisation. Under the Code of Conduct, a lender may not seek repossession until every reasonable effort has been made to agree an alternative repayment schedule with the borrower. The Code is monitored by the Financial Regulator.

I must stress however that there are no indications that such a surge in on the way.