Billy Timmins (Wicklow, Fine Gael)
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Question 68: To ask the Minister for Finance the position regarding debt forgiveness; and if he will make a statement on the matter. [27817/11]

Michael Noonan (Limerick City, Fine Gael)
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As I stated to the Joint Oireachtas Committee on Finance, Public Expenditure and Reform on 1 September 2011, the issue of indebtedness, particularly mortgage indebtedness, is a complex one and it is clear that there is no quick and easy solution to solve all problems.

There have been many contributions to the debate, including suggestions for the granting of debt forgiveness. As the Deputy will appreciate, this is simply not a realistic option. Solutions must be found on a case by case basis through open and meaningful engagement between the borrower and the lender. The planned reform of the bankruptcy and debt settlement arrangements by my colleague, the Minister for Justice and Equality and Defence, is also a key element in any consideration of potential policy options.

The Government is acutely aware of the increasing financial stress that some householders are facing arising from difficulty in meeting their mortgage commitments. Against this background, the Government's Economic Management Council, prior to the summer recess, requested an Inter-Departmental Group to consider further necessary actions to alleviate the increasing problem of mortgage over-debtedness and to report to it by the end of September.

The outcome of the work carried out by the Group, which was chaired by my Department and comprised of representatives from other relevant Departments, the Central Bank and expertise from the banking sector, has been presented to the Economic Management Council. I will bring the Report to Cabinet next week, after which it will be published. My preference is that the Dáil will be given an opportunity to debate fully the contents and findings soon afterwards.