Michael McGrath (Cork South Central, Fianna Fail)
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Question 123: To ask the Minister for Social Protection when she expects the establishment of the new mortgage support and advice function as recommended by the Keane report on mortgage arrears which envisaged the recruitment of approximately 100 advisers with financial, accounting and legal expertise to help borrowers in mortgage arrears in discussions and negotiations with their banks; and if she will make a statement on the matter. [10447/12]

Joan Burton (Dublin West, Labour)
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My Department participated in the Interdepartmental Mortgage Arrears Working Group (referred to as the Keane group) and is currently a member of the Steering Group set up by the Minister for Finance to oversee and drive its overall recommendations. My Department provides a number of supports for those in mortgage difficulty, particularly through the Mortgage Interest Supplement scheme which aims to provide short term support to eligible people who are unable to meet their mortgage interest repayments. In 2011 some 19,000 people benefitted from this scheme at a cost to the Exchequer of almost €68 million.

The Interdepartmental Mortgage Arrears Working Group recommended that an independent Mortgage Support and Advice Service be established to advise mortgage holders in arrears or pre arrears in assessing their options. The report stated that the need for this service would be time limited to approximately 3 years.

The publication of the heads of the Personal Insolvency Bill in January 2012, proposes the introduction of a four step process to address personal insolvency issues with the first three steps involving non-judicial debt settlement arrangements. This is a new arrangement and was not envisaged when the thinking in support of a Mortgage Advisory Service was originally proposed. Therefore, my Department is examining the role envisaged for the Personal Insolvency Trustee to ensure that there is no conflict with or duplication of Government supported services. From the customers perspective for example, the target group and complexity of the problems that need to be addressed appear to be similar and from the advisory perspective, the skills and expertise required would also appear to be similar for both services.

My Department is chairing a Working Group as part of the Implementation Steering Group to examine the issues relating to the establishment of the Mortgage Advice Service, and as part of its remit it is examining the efficiency, necessity and governance arrangements of potentially two separate services. The needs of the customer, the importance of ease of access and information on services and the way in which the services will be made available must be to the fore. My Department will be consulting with all relevant groups as part of its work in this area.