Brendan Griffin (Kerry South, Fine Gael)
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Question 43: To ask the Minister for Finance the position regarding State help for struggling mortgage holders; and if he will make a statement on the matter. [29319/11]

Michael Noonan (Limerick City, Fine Gael)
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There are a number of measures in place to assist people who are having genuine difficulties in meeting their mortgage repayments. The Central Bank's revised Code of Conduct on Mortgage Arrears (the Code) applies to mortgage lending activities with borrowers in respect of their principal private residence in the State. Compliance with the Code is mandatory on all mortgage lenders registered with the Central Bank. The Code came into effect on 1 January 2011. With effect from 30 June 2011, lenders must have in place the required systems and trained staff necessary to support the implementation of the Code. The Code sets out the framework that lenders must use when dealing with borrowers who are in arrears or are in pre-arrears. For the purposes of the Code a "pre-arrears" case arises when the borrower contacts the lender stating that he or she is in danger of getting into financial difficulties and/or is concerned about getting into mortgage arrears. The Code can be accessed at www.centralbank.ie .

The Central Bank has produced, with input from the National Consumer Agency, a consumer guide to assist consumers in understanding the new process under the revised Code. Financial assistance is available to eligible claimants under the Department of Social Protection's Mortgage Interest Supplement Scheme. People in debt or in danger of getting into debt can avail of the services of the Money Advice and Budgeting Service. This is a national, free, confidential, and independent service.

The Government, however, also recognises that more needs to be done in this area and prior to the Summer recess the Economic Management Council asked an Inter-Departmental Group to consider further necessary actions to alleviate the increasing problem of mortgage over-debtedness. The Group's report was published yesterday and is available on my Department's website. The Government are proposing that the Dail be given an opportunity to debate the findings and recommendations of the report and will make time for a debate next week. This will give all sides of the House the opportunity to contribute in a constructive and realistic manner to the deliberations on this important issue. The Minister for Justice and Equality and myself will formulate an implementation strategy to be set out at the conclusion of the Dail debate. This implementation strategy will set out the necessary steps to put into effect all the measures that are deemed feasible.

In the meantime work is already underway to implement some of the key recommendations of the report:-

The Minister of State at the Department of the Environment, Community and Local Government with special responsibility for Housing and Planning will launch two mortgage-to-rent schemes in line with the report's recommendations. These will operate on a pilot basis initially subject to prompt review ahead of wider roll-out. Under each scheme households in extreme mortgage distress who are eligible for social housing will be able to remain in their homes as social housing tenants with either their lending institution or a housing association taking ownership of the property.

The Minister for Justice and Equality has already undertaken extensive work on the Heads of a Personal Insolvency Bill as set out in the report and these will be published shortly.

I have instructed the Banking Division of my Department to begin discussions with the banks to ensure speedy implementation of the measures set out in the report.