Mortgage repossession safeguards
Deputy Gerry Adams asked whether legislation arising from the Dunne judgment would protect distressed mortgage holders from repossession; the Taoiseach said the Bill’s heads were nearing Government consideration and publication was expected that session.
Tá dhá cheist agam ar an Taoiseach, an chéad cheann faoi reachtaíocht atá forógraithe. There is promised legislation to amend the Land and Conveyancing Law Reform Act 2009. This was revealed during the December troika review when the troika said the Government was committed to bringing forward legislation to allow the banks to repossess homes. Will this proposed legislation contain safeguards for home owners to protect them from repossessions? I note the banks are to meet twice with the Central Bank on the issue of burden-sharing. Given that a quarter of all domestic mortgages are now in distress, will further legislation be required to ensure the banks engage in debt write-downs for struggling households?
Regarding the mobility allowance scheme and the motorised transport grants scheme, we have been advised by the media that Teachtaí from the Labour Party and the Fine Gael Party have already been briefed on this matter. I do not know whether this is true. Certainly, given that this was a matter that an Oireachtas committee was dealing with and commitments on consultation were made, the Opposition should have at least been entitled to have the Minister for Health make the announcement on the schemes here. I do not believe it is a good way to do business if we are reliant upon the media to tell us about Government announcements, particularly when they affect constituents we represent.
Comment on this
The first Bill referred to by Deputy Adams is known as the Dunne judgment. The heads of that Bill will come to the Government shortly. It is expected to be published in this session. It is important legislation because of the context of the pressure on the Government in working with the banks and the Central Bank in dealing with mortgages in distress and the opening of the Personal Insolvency Agency in early summer. This legislation has caused quite a number of difficulties. I expect it to be published in this session.
No legislation is necessary for the banks to involve themselves in write-downs. They have been given sufficient moneys under the recapitalisation programme to deal with an element of distressed mortgages, if they so wish. That has been referred to by several bank chief executives themselves.
The Oireachtas committee will have an important part to play in views being put forward in the consultation with the Minister of State at the Department of Health, Ms Sylda Langford and the disability groups to discuss how best to proceed in keeping the moneys intact for the mobility allowance and motorised transport grant but devising a scheme that is compliant with the law.