29 Deputy Noel Ahern asked the Minister for Finance the position regarding the recent report from mortgage review group; if some or all of the recommendations have been accepted by the Government; if legislation primary or secondary is required to implement; if the position of each financial institution is known; if there is an ongoing process to sign up remaining financial institutions to the various recommendations; if the status of an institution (details supplied) is known in relation to accepting the 60% minimum of interest only mortgage; and if he will make a statement on the matter. [46800/10]

The Deputy will be aware that the Mortgage Arrears and Personal Debt Expert Group (Group) have now completed their work having submitted an Interim Report to me on 5th July 2010 and their Final Report on 16th November 2010. Both Reports were brought before Government. As I said at the time of its publication all of the recommendations included in the Group's Interim Report were accepted by Government at the Cabinet meeting of 6th July 2010. These recommendations were also repeated in the Group's Final Report along with additional recommendations based on the findings of the Group in the second phase of its work. The contents of the Final Report were noted by Government at a meeting on 16th November 2010.

On the question of primary and secondary legislation to support the implementation of the Group's recommendations the Deputy should note that there will be a need for legislative support which will involve my own Department, the Departments of Social Protection (DSP), Environment, Heritage and Local Government (DEHLG), Justice and Law Reform (DJLR), as well amendments to the statutory Code of Conduct on Mortgage Arrears by the Financial Regulator.

In the case of my own Department the need for legislative change arising from the Group's report will be examined in the context of the preparation of the second Central Bank Bill.

In order to implement those recommendations in relation to the mortgage interest supplement scheme (MIS) changes to both primary and secondary legislation will be required. The Department of Social Protection is currently developing an implementation plan that will set out a framework for the future of the scheme.

New regulations and guidance are currently being developed by DEHLG in the context of the social housing reform programme to provide that housing authorities could disregard the household's current accommodation for the purposes of determining eligibility for social housing support (the relevant provision in the 2009 Housing Act provides that ownership of accommodation is one of the criteria which determines eligibility). I am informed that work is ongoing on the development of a new needs assessment process which will allow an earlier trigger point for the social housing needs assessment process to take place where a case has been determined to be unsustainable in the long term, following exploration of all other options. It has already been indicated by the Minister for Justice and Law Reform to the House on several occasions that he intends to give early attention to the Final Report on Personal Debt Management and Debt Enforcement of the Law Reform Commission which is expected before the end of the year. That Report is expected to contain recommendations on comprehensive reform of the system of personal insolvency law in Ireland. In the interim, the Minister, in the Civil Law (Miscellaneous Provisions) Bill 2010, which is before the House, has provided for:

(i) a reduction in the application period to the Court for discharge from bankruptcy from 12 to 6 years, and

(ii) automatic discharge from bankruptcy where the adjudication order has existed for 20 years.

The commitment in the Renewed Programme for Government of October 2009 indicates that debt enforcement will be reformed in light of the deliberations of the Law Reform Commission.

Many of the recommendations included in the Group's Interim Report are being underpinned by amendments to the statutory Code of Conduct on Mortgage Arrears (CCMA) approved by me and published by the Central Bank on 6th December 2010. Lenders are required to comply with the Code as a matter of law. The Central Bank will also be writing to lenders to issue directions under Section 149 of the Consumer Credit Act 1995 which will mean they cannot impose arrears charges or penalty interest on borrowers who are co-operating with the Mortgage Arrears Resolution Process. Lenders representing the majority of the market have already indicated their willingness to implement the group's proposals for a deferred interest scheme, DIS, or a variation of it and the remaining participants will be requested to do so. The Deputy will be aware from recent media reports that AIB, Bank of Ireland, EBS Building Society and Irish Life and Permanent are reported to have signed up to the DIS. The DIS is to apply to those homeowners unable to pay the full interest on their mortgages but able to pay at least 66%. While the DIS is voluntary for all lenders, those who have signed up in support of the scheme will be monitored by the Financial Regulator to ensure compliance.

Recommendations which are not required to be supported by legislation or are not being underpinned by the revised CCMA are not obligatory on the lender. However as the recommendations are intended to be of benefit to the lender as well as the borrower it is assumed that lenders will cooperate and implement the Groups proposals or variations of them. The Group has proposed in the context of the DIS which is voluntary that the scheme should be reviewed within 18 months of its commencement in order to inform whether alternative policy actions are required this review will also include the level of take up by all lenders.