Mary Lou McDonald (Dublin Central, Sinn Fein)
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To ask the Minister for Finance if he will provide details of the legislative, taxation or additional measures he intends to put in place to assist families in mortgage distress. [39880/12]

Michael Noonan (Limerick City, Fine Gael)
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The Government is aware of the financial stress that some households are facing arising from difficulty in meeting their mortgage commitments. Mortgage holders who are in difficulty with their mortgage obligations in respect of their primary residence have significant protections available to them under the Central Bank’s Code of Conduct on Mortgage Arrears. In addition, the Department of Social Protection’s mortgage interest supplement scheme also provides for direct support to mortgage holders that have had to avail of social welfare support. Budgeting and debt advice is also available through MABS which is also funded by the Department of Social Protection.

The "Keane report" made a number of recommendations to tackle the mortgage arrears problem, but it indicated that bankruptcy reform would be a central catalyst to the resolution of the problem and that, in particular, the early introduction of new judicial and non-judicial personal insolvency options is vital. The 2010 Law Reform Commission Report also took a similar view on the overall personal debt situation and it also made a significant number of detailed recommendations for change. The Government, having regard to its Programme for Government commitment to fast-track personal bankruptcy reform, took account of these reports in the development of the Personal Insolvency Bill which was published on 29 June 2012 by the Minister for Justice, Defence and Equality. The Deputy will be aware that the Bill is currently before the Oireachtas and that the Bill has now been considered by the Select Committee on Justice, Defence and Equality.

The provision of a mortgage advisory function is also key. The Minister for Social Protection has recently launched this service which includes the provision of a mortgage arrears information helpline and the provision of ‘one-to-one’ independent financial advice by qualified accountants to mortgage holders when they are considering the offer of a long term forbearance/resolution offer by their regulated mortgage lender.

This service will tie in with the development and implementation of Mortgage Arrears Resolution Strategies by lenders as required by the Central Bank. Under this initiative, mortgage holders are requested to segment their loan book and to put in place a framework for all mortgage holders experiencing difficulty, including those with the most difficult mortgage position and for whom a long term forbearance/resolution option is likely to be the best option in the best interest of the customer. In addition the mortgage to rent scheme involving the Department of the Environment, Community and Local Government and voluntary housing bodies is now in place on a nationwide basis.

Regarding taxation measures, Budget 2012 provided for significant measures to help mortgage holders including the increase in mortgage interest relief for first time buyers who took out their first mortgage between 2004 and 2008. Details of any future taxation changes will be a matter for decision at budget time.

The Government remains very committed to progress measures to assist genuine mortgage holders in difficulty and the Government committee on mortgage arrears, which is chaired by An Taoiseach, continues to meet. It is the intention of Government to ensure that those mortgage holders in genuine difficulty will receive appropriate assistance and a high priority has been assigned by Government to the implementation of this broad range of measures to assist those experiencing difficulty on their mortgage across the relevant Departments and agencies.