The Tánaiste's comments, quoted in the media yesterday, about reducing taxes for the coping classes in the years ahead were very interesting. I am sure that was for an audience not here but in Killarney over the coming weekend.

The residential mortgage arrears and repossession statistics for quarter three reveal a damning indictment of the failure of everybody trying to deal with mortgage arrears. Almost 32,000 are now 720 days or more in arrears. While the Tánaiste is talking about commitments to reduce taxes on the coping classes in the years ahead, this cohort of people is now under huge stress and pressure. It seems nothing is being done for them. Recently, the Governor of the Central Bank said he was tearing the hair out of his head because of the banks' inability to deal with this issue. However, families are tearing the hair out of their heads because no proper restructuring offers are being made to them.

In reference to the 0.5% decrease in quarter three, which is the first decrease since 2009, the report states: "However, this decrease masks divergent trends between short-term and longer-term arrears." While we acknowledge the statistics with regard to the short term, the long-term arrears represent a massive problem that needs to be addressed. To date, the Government, the Central Bank and most importantly the banks themselves are failing to address that issue. They are now including threatening letters as a solution to mortgage arrears of 720 days or more.

We have previously called for independent oversight to assess what is a sustainable solution. I would be very concerned about a potential property bubble in some parts of Dublin coming to bear again and we will see banks move very quickly on these families for repossessions and sending threatening legal letters.

There continues to be a serious problem with mortgage arrears. The Government's plan for tackling that mortgage arrears problem is based on one important premise, which is keeping the roof over people's heads. Today's figures show that some progress is being made. The statistics show a decline in the overall stock of principal dwelling houses with mortgages in arrears relative to the figures for the end of June. This is the first decrease in the outstanding balance since the series began in September 2009. It shows that the Government strategy in tackling mortgage arrears is working and that banks are engaging proactively with their customers to find solutions.

In addition, early arrears declined significantly during the reporting period with a quarter-on-quarter fall of 6%. This appears to demonstrate some success by the lenders in addressing the accounts in early arrears and putting in place appropriate measures to prevent borrowers from going further into arrears. The number of principal dwelling house mortgage accounts, which are categorised as restructured at the end of September, now stands at 80,555, an increase of 1.5% when compared with the previous quarter. Consumers and lenders are agreeing permanent restructures for those in arrears or those who think they will fall into arrears. Engagement with banks and borrowers is crucial to securing sustainable mortgages.

The Government's continuing approach to tackling mortgage arrears is based on the Central Bank, which has now set clear targets for the banks to deal with distressed borrowers, requiring them to offer sustainable solutions by the end of next year with 50% to be done by the end of this year. The Central Bank is closely monitoring the banks' sustainable solutions and auditing their work regularly. We have radically overhauled the bankruptcy rules, reducing the period from 12 years to three years. That legislation will be commenced very shortly. We have introduced the mortgage-to-rent scheme with more than 1,000 cases being progressed and more than 100 families finding a solution. The Insolvency Service of Ireland has been established, providing a range of solutions to resolve debt problems. The Central Bank has issued a revised code of conduct on mortgage arrears, which ensures the resolution of each case in a fair, sustainable and transparent way. The Central Bank is working to find solutions for people with multiple-debt issues because in some cases it is not just the mortgage as other debts are involved.

I have also read the synopsis of the report and there are two key areas the Tánaiste has not mentioned. I repeat a sentence I already quoted: "However, this decrease [the 1.5% the Tánaiste mentioned] masks divergent trends between short-term and longer-term arrears." The report continues: "PDH mortgage accounts in arrears of over 90 days at end-September 2013 amounted to 99,189, an increase of 1,315 on the previous quarter." This means there is an increase in the number of people in mortgage arrears of 90 days or more. Within that cohort there are 31,843 residential mortgages in arrears of 720 days or more. This cohort cannot wait for the Tánaiste's hope to help the coping classes and have to be dealt with immediately. A threatening letter from a bank simply does not represent a solution.

A question, please.

Would the Tánaiste agree that threatening letters are not the way to address this cohort of people? There has to be meaningful engagement and a certain element of independent oversight. At the end of the day a bank's only interest is to protect its capital base - that is its obligation. Surely the Government and the Central Bank have an obligation to those people to have some independent oversight to assess what is a sustainable solution primarily for these 32,000 families whose mortgages are in arrears of two years or more.

I acknowledge there is a problem with people who have been in arrears for a very long time. It obviously follows that the longer it takes to resolve those arrears problems, the more they are to go into arrears. These are people who are now suffering the legacy that Deputy Kelleher and his colleagues left to them. We need to get sustainable solutions for those people who are in arrears. It will be done over a period of time on a case-by-case basis.

There is progress on the arrears. There have been 45,177 permanent mortgage restructures up to the end of September. The total number of mortgage accounts in arrears has fallen by 2,316. The number of mortgage accounts in arrears of 90 days or more has also fallen by 1,468. It has to be worked through. The strategy we have in place is one where the Central Bank has set targets for all of the banks and lending institutions to work with people in mortgage arrears. They will now be working within a legislative framework that strengthens the hand of the borrower. The introduction of the insolvency service and the new legislation reducing the period of time for bankruptcy from 12 years to three dramatically changes the balance between the borrower and the lender.

These will need to be worked out on a case-by-case basis. It will be a gradual process. Clearly, those in longer-term arrears are in a more difficult situation. Clearly, it will require a greater degree of effort and engagement for those arrears problems to be resolved. However, we are making progress on it. We want to see further progress made. I agree with the Deputy that the solution for anybody in mortgage distress is not to get a threatening letter.

That is the language.

The solution is for an engagement between the bank and the borrower so that a solution can be found as quickly as possible. That is the approach the Government supports and that the Central Bank requires banks to implement.

I hope the Tánaiste does not tell that to the delegates in Killarney. They would not be too happy about it.