There have been so many pronouncements and declarations about the mortgage crisis over recent days that they are difficult to comprehend, and many people on the street are looking on with some disbelief. Given that it is two years since the Government took office, people are coming to the conclusion that it is the imminence of the by-election that has caused the sudden series of announcements and the Government's realisation that it is a full-blown crisis which needs to be tackled urgently.

The Taoiseach and the Tánaiste have committed to bringing in legislation to facilitate repossessions of family homes. The Taoiseach made that statement categorically last week. The Secretary General of the Department of Finance added to that when he told the Committee of Public Accounts that one could not expect the taxpayer to subsidise "them", meaning the people in arrears, to remain in houses that are beyond their means, given an "unnaturally low" level of repossessions. The Labour Party was furious with this remark and immediately set out to rubbish the Secretary General and hang him out to dry. Indeed, a leading member of the Labour Party, Mr. Jack O'Connor, said that the Secretary General's comments were "reprehensible and barbaric". The Minister for Finance said that the Secretary General is the Accounting Officer and must be honest when answering questions. I do not know whether he meant that the Labour Party Ministers and leading members of the party do not have to tell the truth all the time when they answer questions.

That is what one does at election time.

The Minister of State, Deputy Brian Hayes, put the tin hat on it when he said that we cannot have necessary recovery without the stick of dealing with people who are in houses they can no longer afford. The Government is facilitating the banks all the way; €1 billion was given back to them last week. Under the Personal Insolvency Act, the banks retain a veto over restructuring deals with clients and customers. Last week I met a young couple in Ashbourne who were working and wanted to engage with the bank.

All the bank did was raise the bar, preventing any discussion. I encountered another young woman, looking after her mother, who is also in arrears but who wants to deal with her lender. Again, the bar was raised by the bank. The banks are not engaging with people. Instead, they are intimidating young couples. I have one case of a young couple who were told when their interest-only period ends, they had better be thinking about selling on their house. That is what is happening on the ground in reality.

Does Mr. Moran enjoy the full confidence of the entire Government? Will the Taoiseach explain to the House why he is insisting the banks retain a veto over all restructuring deals with their clients? I would argue strongly that it needs independent oversight.

It is not appropriate for any Member to publicly castigate a public servant.

I did not.

If one looks at the repeat of the committee meeting which the Secretary General attended, he was actually commended on his forthrightness and the detail into which he went about the matters raised with him.

There are 100,000 people out there who have problems with their mortgages. They are in limbo. The Government's intention is to bring about clarity for them in respect of their house, their positions and how they can plan for the future. Regarding the wall of allegations about wholescale house repossessions, nothing could be further from the truth. For the past two years, the Government has worked hard in restructuring and recapitalising the banks, as well as making arrangements, based on the recommendations of the Cooney report, for the different strategies that can be adopted by the banks in bringing about a resolution to each person's mortgage difficulties. All cases are unique with particular circumstances. Resolution will also include the complexity of the personal insolvency legislation which has passed through the Houses. The insolvency agency will open its doors during the summer.

The impact of what Deputy Martin suggests is that the bank guarantee should be continued.

The levy.

Does he want to expand the disastrous situation that he had previously by extending that across Europe? The Minister for Finance has made clear the Government's intention for those with mortgage difficulties. The 100,000 people under pressure every day and every week in respect of their mortgage problems can have them resolved satisfactorily though a variety of opportunities and methods that are now in place. The last of these to be considered is house repossession. We want to see the majority of these people happy in the knowledge a resolution has been brought about in restructuring their mortgage arrangements with their bank or lender and which they will adhere to in a new format. We want this to give them the opportunity to live and plan their lives without this pressure which has been on them for the past several years and which came about, of course, as a result of disastrous policies produced before. The arrangement will allow them to contribute to their local economy and, as a consequence, to their country.

We want the majority of these difficulties to be resolved with debts restructured and reconfigured without consideration of house repossessions. I am quite sure Deputy Martin understands that very well indeed.

Hear, hear.

The Taoiseach did not answer the question I asked. Why is the Government insisting on the banks retaining a veto over all restructuring deals with its customers? Last week, when I was in Ashbourne, County Meath, I met a young couple - the husband is working - in mortgage difficulties who want to do a deal and are anxious to make a contribution. All the bank does in return is up the bar with fresh obstacles. In another case I have been dealing with for 12 months, which involves a public servant who has an income and can make a contribution, the bank has told the couple to sell their house. I met another couple last week in Ashbourne - there seem to be quite a number of people in mortgage difficulties in the area - who are facing a similar issue. The rhetoric they hear in this House is incredibly disconnected to the reality they have experienced on the ground for the past number of years when dealing with the banks. They do not see themselves in limbo. Quite a lot of them see themselves in purgatory and are unsure where they are going to end up.

The problem is that the Taoiseach and the Government have facilitated the banks all the way in this case. Two years on, talking tough is not enough. Telling the banks they must do this and must do that is not enough. Fianna Fáil put forward a debt settlement office Bill which would provide for an independent debt settlement office to arbitrate in matters regarding household debt between the banks and the customer. The banks have been given a fair opportunity here. Why this insistence on the banks having a veto in these arrangements? Why the insistence that the banks be facilitated all the way with regard to this matter?

The Deputy has identified the problem that has been here for a long time. It is the interminable delays in dealing with people's cases. The Deputy pointed out he is dealing with a case for 12 months but no progress has been made on it. Having put all these arrangements into place, we want to see a quick and effective solution brought about for the individual uniqueness of each case.

It is not the fault of the person in question.

That means the banks have to sit down with each client to work out their circumstances and work out a solution through many of the various options in place. I know, as well as the Deputy knows, that the banks claimed they could not do this because of a loophole in the law that was never dealt with. That question will be dealt with now. Banks themselves have said-----

That is not the issue. That is about repossession.

Please, Deputy.

I am talking about agreeing deals with people.

The banks themselves have been at pains to say that the consideration of house repossession is the last resort and the end of the line. I want to see a situation in which the banks do not have an excuse to say they have not got all of the paraphernalia they need to deal with this issue swiftly, effectively and compassionately.

The Government has given them the power to repossess.

What has been wrong with Deputy Martin in past times is that he never listened. We want to work with the 100,000 people in mortgage difficulties. I understand the banks have been training people for some considerable time because they lost the capacity to deal with this particular problem.

Two years.

They have trained personnel to work with clients individually to bring about a resolution of what the particular circumstances might be for any mortgage. The last consideration is house repossession. Tomorrow, the Minister for Finance will address this matter. Having put all of this together, including the personal insolvency agency, I hope when the banks deal with their clients in mortgage difficulties that there will be a speedy and compassionate resolution that both parties will adhere to in a restructured fashion. That is what we want so that this 100,000 people can then contribute to the well-being of their local economies and we can offer them hope and confidence for the future.

It is the banks' solution.

The banks will have the last say.