Billy Timmins (Wicklow, Fine Gael)
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Question 77: To ask the Minister for Finance the position regarding debt write-down or forgiveness for persons who cannot keep up payments and are finding they have no income left at the end of the month; and if he will make a statement on the matter. [41062/11]

Michael Noonan (Limerick City, Fine Gael)
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The banks in Ireland, including those in which the State has a significant shareholding, are independent commercial entities and decisions on the handling of their loans are, in the first instance, a commercial matter for the individual institutions. However, the Government is aware of the increasing financial stress that some households are under arising from difficulty in meeting their loan, and in particular, their mortgage repayments.

The Deputy will be aware of the report of the Inter-Departmental Group on Mortgage Arrears, which was published last October. The report sets out a number of recommendations to address the situation of those in mortgage arrears. The report stated that the issue of mortgage difficulty can only be addressed in an efficient way on a case by case basis. Arising from the report, a number of developments are underway that will be of assistance to mortgage holders experiencing significant difficulty.

The reform of personal insolvency law was identified in the report as a critical measure to tackle mortgage distress, and considerable work has now been undertaken to prepare a Bill that should be ready shortly for Government consideration. This legislation will be the responsibility of my colleague, the Minister for Justice and Equality.

Progress has also been made on preparing the groundwork for mortgage-to-rent schemes as a social housing response to this problem. In addition, the Central Bank has received mortgage arrears resolution strategies and implementation plans from mortgage lenders and these will now be analysed and considered by the Central Bank. A Steering Group, chaired by my Department and including representation at a senior level from the other relevant Departments, has been established by Government to oversee and implement the report's recommendations across the range of relevant Departments.