Micheál Martin (Cork South Central, Fianna Fail)
Link to this: Individually | In context | Oireachtas source

60. To ask the Taoiseach if he has met with or spoken to the Chancellor of Austria; and if so, the issues they discussed. [30933/18]

Leo Varadkar (Dublin West, Fine Gael)
Link to this: Individually | In context | Oireachtas source

I met with the Austrian Chancellor, Sebastian Kurz, in Dublin Castle on Sunday 8 July.

The Chancellor’s visit to Ireland took place as Austria begins its six-month Presidency of the Council of the European Union. It followed my own visit to Vienna in February.

Topics discussed during our meeting included Brexit, migration, trade, the digital agenda, and the EU's budget post 2020 - these issues will feature on the EU's agenda during the Austrian Presidency.

While we meet regularly in Brussels at the European Council, this was a very useful opportunity for more in-depth discussion in particular in the context of Austria's EU Presidency role.

We also acknowledged the excellent bilateral relations between our two countries. Ireland and Austria are close partners within the EU. We share much in common, as open, pro-enterprise economies, who see the EU as a promoter of growth, open markets, employment, and a high level of social protection.

We also cooperate closely on international issues, including at the United Nations, and I highlighted Ireland's candidature for an elected seat at the security council for the term 2021 - 22.

Following the meeting, I hosted a dinner for the Chancellor in the State Apartments, Dublin Castle.

On Monday 9 July the Chancellor visited the border accompanied by the Minister for Agriculture, Food and the Marine, Michael Creed.

The role of running these sales processes, including the selection of the successful bidder, is entirely the role and responsibility of the board and management of whatever Bank in question. Any interference by me would be highly inappropriate.

In terms of providing protections to consumers whose loans are part of loan sales, the Code of Conduct on Mortgage Arrears (CCMA) forms part of the Central Bank’s Consumer Protection Framework. It is a statutory Code first introduced by the Central Bank in February 2009, with the current CCMA becoming effective from 1 July 2013. The CCMA provides a strong consumer protection framework, aimed specifically at the process to be followed by relevant firms, to ensure borrowers in arrears or pre-arrears in respect of a mortgage loan secured on a primary residence are treated in a timely, transparent and fair manner.

As the Deputy will be aware, most loan agreements include a clause that allows the original lender to sell the loan on to another firm. The Consumer Protection (Regulation of Credit Servicing Firms) Act 2015 (“the 2015 Act”) was introduced to fill the consumer protection gap where loans are sold by the original lender to an unregulated firm. Under the 2015 Act, if the firm who bought loans from the original lender is an unregulated firm, then the loans must be serviced by a ‘credit servicing firm’ which is regulated by the Central Bank. Credit Servicing Firms are typically firms that manage or administer credit agreements such as mortgages or other loans on behalf of unregulated entities.

Credit servicing firms must act in accordance with the requirements of Irish financial services law that applies to ‘regulated financial service providers’. This ensures that consumers, whose loans are sold to another firm, maintain the same regulatory protections that they had prior to the sale, including under the various statutory Codes of Conduct issued by the Central Bank such as the Consumer Protection Code 2012, Code of Conduct on Mortgage Arrears 2013, and the SME Regulations. Contractual terms are not changed by the sale of the loan.

Over the last number of months, there has been a lot of concern regarding loan sales. Arising from this, Deputy Michael McGrath published a Bill, the Consumer Protection (Regulation of Credit Servicing Firms) (Amendment) Bill 2018, on the regulation of loan owners. Committee Stage is scheduled for this Thursday, 12th July. The approach taken with this Bill will require that loan owners are authorised by the Central Bank.

In February this year, I wrote to the Governor of the Central Bank and requested that they carry out a review of the CCMA to ensure it remains as effective as possible and this is currently underway and to be completed as soon as practically possible.

Finally, issues relating to Rebuilding Ireland and Mortgage to Rent are a matter for my Government colleague Eoghan Murphy T.D. Minister for Housing, Planning & Local Government.