The mortgage arrears crisis shows no sign of abating. We heard at the weekend about significant disagreements between the Financial Regulator and the banks regarding the content of a sustainable resolution package for mortgage arrears and the pace of progress being made by the banks. The economic impact of the mortgage arrears crisis is severe. It is hammering consumer confidence and undermining the prospect of a recovery in the domestic economy. More than 95,000 people are now in arrears of more than 90 days. The Government's decision to amend the code of conduct places a substantial number - more than half - of these individuals in a serious situation in respect of the banks and the approaches they may make. There are genuine fears about an impending wave of family home repossessions. People are very worried.

Banks were supposed to have already achieved a 20% target of providing sustainable solutions to people in mortgage arrears. I ask the Taoiseach to update me on the extent to which that target, which was due to be reached in June, was met. They are supposed to reach a target of 50% by the end of this year. My party tabled a motion for constructive debate this evening. We are calling on the Government to amend substantially the code of conduct to give greater protection to those who are in arrears by, for example, establishing a clear definition of what constitutes an unsustainable mortgage, ensuring a minimum protected level of income for people in arrears and reinstating the 12 month moratorium on commencing repossession proceedings. We would ensure that banks record all calls made with those who are borrowing from them lest there be any accusation of aggressive or unacceptable behaviour. We would oblige a bank seeking an order for repossession to first obtain written confirmation from the Central Bank that it has exhausted every other course of action available to it to keep the family in its home.

Does the Taoiseach not accept that it is now time for the Government to intervene directly to offer protection to those in mortgage arrears? Can he outline to us the nature of the disagreement between the Financial Regulator and the banks and outline what he believes a sustainable resolution would comprise?

A sustainable resolution is to arrive at a situation whereby a person currently in mortgage distress or arrears enters an agreement with the lender that the person in that situation can be sustainable, in other words, can meet the requirements over a period in a different set of circumstances. Deputy Martin raised two issues, the arrears and the progress being made by the banks on the restructuring of mortgages. He says it is time for the Government to get involved but we have been involved for quite some time. If there had been involvement previously we certainly would not have the mess we are now dealing with. All of the tools are now in place to allow for the accelerated working out of mortgage arrears.

Banks and borrowers are now required to use these tools to reach a fair, sustainable and affordable solution to mortgage arrears. The Deputy and I both know the pressure this causes for people everywhere around the country. There is no doubt that over the last number of years there has been insufficient activity. That is why the Central Bank announced its new targets. These targets will be strictly monitored and enforced so that banks can reach sustainable solutions for families in mortgage arrears. The Governor, Professor Honohan, set out the conditions and he expects to see recommendations from banks against the performance on the targets that have been set. If the Central Bank requires further powers, the Government will always be available to deal with that.

As of the end of March, 79,689 mortgage accounts were categorised as restructured, of which 53% were not in arrears at the end of quarter one. Of the percentage of the total stock in arrears, both early and 90 days plus, 37,454 or 26% were classified as restructured. This does not mean that 47% have fallen back into arrears because restructured accounts in arrears include accounts that were in arrears prior to restructuring, where the balance in arrears had not been eliminated, as well as accounts that are in arrears under the current restructuring arrangement.

The public targets have a number of elements. Quarterly targets have been set in respect of the number of sustainable solutions proposed to customers. The application of the targets commenced at the end of quarter two of 2013 and are being enhanced in subsequent quarters, with 2014 targets to be set in due course. It is expected that 50% of mortgage holders will have their restructured proposals dealt with by the end of this year and the remainder in 2014. Progressively more demanding quarterly targets will be set for the conclusion of the sustainable solutions.

I want to be clear with the Deputy that no targets are being set for repossession of homes. That has to be the last resort and the conditions state that clearly. These targets are deliberately demanding and they are designed to ensure that the vast majority of families in this country will be offered solutions that do not involve house repossessions. We all know how important that is.

The Taoiseach did not quite answer the questions I asked him. Does he accept the proposals we are tabling tonight on strengthening the code of conduct in order to protect those in mortgage arrears? I outlined a series of constructive steps we believe should be taken to give genuine protection to those who are in arrears. The Government's only intervention to date has been designed with the Central Bank to facilitate more repossessions of family homes. There is no other way of assessing the situation. The Land and Conveyancing Law Reform Bill 2013 has been changed to facilitate repossessions without conditions. The Government has diluted many of the protections contained in the previous code of conduct in regard to the level of contact banks are allowed with customers and other areas. It has also reduced those entitled to mortgage subsidy. The entire agenda has been to put families in arrears into further jeopardy in terms of their relationship with the banks. There is a disconnect between official utterances and the reality on the ground as experienced by people in mortgage arrears. This is particularly the case for those with equity in their houses, in regard to whom the banks appear to be adopting a more aggressive approach despite the fact that they have the capacity to take up split mortgages or other alternatives. A statistic that speaks for itself is that only 140 split mortgages have been agreed in the last two years. That sums up the inertia and lack of action that have allowed the problem to worsen.

The Taoiseach did not answer my question on the targets. What percentage of sustainable solutions was achieved by the end of June? It was meant to be 20%. What is the actual figure?

It will be another two weeks before the Central Bank is able to publish the level of adherence by the banks to the targets. I do not have that information to hand and it will not be available for two weeks.

Does the Taoiseach expect me to believe that?

Yes I do, unlike what I heard when I was in here for many years previously.

He is obviously on top of it.

We cannot leave 100,000 families locked in limbo. That is why the Government put in place a comprehensive programme of action to assist struggling householders.

The eviction law.

We had a long discussion about the insolvency arrangements, with bankruptcy being the ultimate mechanism applying.

There is no strategy for or policy on forcing householders to have their homes repossessed. It is not within the Deputy's keeping to make such comments. Everybody recognises the value-----

What does the Taoiseach mean by it is not within my keeping?

It is not the Deputy's normal practice. Everybody in the country recognises the value of the family home, more so than in most other countries. We want that to be the end of it, which I know the Deputy accepts.

The Secretary General of the Department of Finance has said there will be a tax.

The Government strategy was set out in five points which I have made known to the Deputy previously. They include comprehensive advice and assistance, introducing innovative new measures to deal with these cases, rebalancing personal insolvency legislation, the introduction of measures to assist families to stay in their homes, if possible, and challenging the banks to live up to their responsibilities in this crisis through the speedy roll-out of their own range of solutions.

Is that a memo from one of the banks?

As the Deputies do not wish to listen to the Taoiseach, I ask him to conclude.

I hope that in two weeks time when the Central Bank publishes the evidence from the banks, we will see whether they have lived up to the targets set. The targets will become progressively stricter and more detailed in the quarters ahead.

It is now 9 July.