Bernard Durkan (Kildare North, Fine Gael)
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Question 100: To ask the Minister for Finance the reason withdrawals in accounts are interpreted as sales; if his attention has been drawn to the fact that the agent is adamant that they had correctly interpreted the regulation and should have refused in the case of a person (details supplied) in County Kildare; and if he will make a statement on the matter. [31285/10]

Brian Lenihan Jnr (Dublin West, Fianna Fail)
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I have been advised by the Revenue Commissioners that issues concerning the recording of cash transactions have been identified in the course of an ongoing Revenue audit of the person referred to. As the issue is currently the subject of an ongoing examination the matter cannot be finalised at present.

Tom Hayes (Tipperary South, Fine Gael)
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Question 101: To ask the Minister for Finance the measures his Department has put in place to assist homeowners who are having difficulty in paying their mortgages; the measures that he has agreed with the Financial Regulator in terms of policy to help homeowners in difficulty; the further measures that have been agreed with the banks on this issue; the measures that have been implemented to date; and if these measures can prevent people's homes being repossessed unnecessarily. [31442/10]

Brian Lenihan Jnr (Dublin West, Fianna Fail)
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I have spoken extensively in this House on the supports which are available to those homeowners who find themselves in difficulty. These supports include the Code of Conduct on Mortgage Arrears, the Mortgage Interest Subsidy Scheme and the services provided by the Money Advice Budgeting Services. In addition at my request the Financial Regulator after consideration extended the moratorium on mortgage arrears from 6 months to 12 months for all mortgage lenders which came into effect 17 February 2010.

The Deputy will be aware that in my Budget speech in December the Government refocused mortgage interest relief on those who bought their homes at the peak of the market, many of whom find themselves in negative equity. Where a homeowner's entitlement to mortgage interest relief would expire in 2010 or after, they will now continue to receive it up to the end of 2017.

The Deputy will also be aware that at the end of February, I announced the establishment of the Mortgage Arrears and Personal Debt Expert Group, under the chairmanship of Mr. Hugh Cooney an insolvency accountant, as a follow up to the Government's commitments towards Protecting the Family Home under the Renewed Programme for Government. The Expert Group has completed the first phase of its work and submitted an Interim Report to me last week. The Deputy will be aware that all of the recommendations contained in this report were agreed by Government on Tuesday 6th July 2010. The Interim Report also includes recommendations supporting significant reforms of the Mortgage Interest Supplement Scheme which were also approved by Cabinet.

I believe that these recommendations when implemented should result in improved communication; a more consistent assessment process by lenders of options for borrowers in difficulty through the use of a Standard Financial Statement and the introduction of an industry-wide Mortgage Arrears Resolution Process (MARP) including a range of forbearance measures. All of these will be of real help to those in difficulty. The Financial Regulator has committed to implement as quickly as possible amendments to the Code of Conduct on Mortgage Arrears which will underpin key recommendations in the Interim Report.

While the recommendations set out in this report are designed to address the more straight forward issues uncovered by the Expert Group during its data gathering phase, I understand that in the next phase of its work the Expert Group will be focusing on the more complex issues in the area of mortgage arrears and personal debt. I expect to receive their final report by the end of September. I am confident that the lenders will play their part in implementing the recommendations. The Irish Banking Federation (IBF) have stated that the banking sector are fully committed to working with Government and the relevant agencies to ensure that both mortgage and personal debt are dealt with in a sensible and fair way.

I note from the latest statistics available from the Financial Regulator that while the number of mortgages in arrears had increased over the previous quarter there was a decrease in the number of arrears cases where court proceedings had been issued seeking repossession. I am confident that the recent measures taken by the Government along with the ongoing work of the Mortgage Arrears and Personal Debt Expert Group and the existing supports I referred to, will assist those who are in difficulty with mortgage arrears as a result of unemployment and the economic downturn.