In his address on Sunday night, the Taoiseach stated that the banks must do more to deal with mortgage distress. It was probably the understatement of the year, particularly given that one in five residential mortgages remains in arrears. The figures are quite dramatic. It is as if the Government is on the sidelines and is helpless in refereeing a match over which it has no control. Under the Land and Conveyancing Law Reform Act 2013 which the Government introduced, repossessions are becoming the norm and are the acceptable option for banks to pursue those in arrears. It seems this is with Government acquiescence. The Government put the banks in the driving seat. As Members will be aware from presentations to the Joint Committee on Finance, Public Expenditure and Reform, AIB, Bank of Ireland and Ulster Bank between them sent out approximately 13,000 letters initiating repossession proceedings.

There has been a dramatic increase in the number of court proceedings issued during quarter three over quarter two of 2013. The increase is about 570% with the number issued during quarter three being well over 1,800 compared to 270 in quarter two of this year. The Fitch report estimates that about 20% of residential mortgages that are in arrears will end up being repossessed - that is 20,000 homes that will be repossessed. The tables in the report detailing court proceedings and so on show that the problem is escalating and accelerating in terms of the numbers.

A question, please, Deputy.

The Taoiseach said to me in July that repossessions would be the last resort. He said "that has to be the last resort" and that families would be offered solutions that did not involve house repossessions. Is he comfortable with a figure of approximately 20,000 family homes being repossessed? What will the Government do to intervene to provide for those in mortgage distress? He acknowledged that banks are not doing half enough, so what will he do? What has he against the idea of establishing an independent mortgage resolution office that could genuinely arbitrate between the banks and their customers to provide for meaningful and sustainable solutions for those in arrears?

The Deputy asked what I am going to do about this; I am going to do a hell of a lot more than he did. I do not accept his premise-----

Bad form is nothing to go by.

Thank you, Deputy Troy. I do not accept Deputy Martin's premise that repossessions have become accepted as the norm. It is beyond doubt that there will be some repossessions.

How many?

Nobody likes to see houses being repossessed but it is not realistic to suggest that there will not be some repossessions. I do not accept the Deputy's assertion that repossessions have become the norm or that repossessions are a fundamental part of Government policy. They are not. We have made that perfectly clear on many occasions.

As the Deputy is aware, I think much to his consternation, we have rebalanced the rights of borrowers and lenders with the personal insolvency legislation, the most radical shake-up in a century. Despite the comments he has made on numerous occasions about the banks holding the veto here, the first number of the decisions are very clear and speak for themselves. As was announced today, and as has been repeated on many occasions, the first requirement is for borrowers to engage with the banks. It is not a sustainable solution to send out a letter going down the legal route. The fact that many cases, as the Deputy mentioned, are heading down the legal route does not mean automatic or eventual repossession. Nor do I accept, as the Deputy seems to have accepted, the figures put forward by Fitch that 20,000 repossessions will take place. We cannot allow a situation where the economic recovery will bypass those families who have had mortgage problems. As the Deputy will be aware in budget 2012 mortgage interest relief of 30% for first-time buyers was introduced. That was for those who bought their homes between 2004 and 2008 and that eased the cost for 270,000 householders. As the Deputy will also be aware, and this is another thing that is being done, the Department of Finance now produces monthly data and the data for October show a slight decline in the overall number of people falling into arrears. Engagement between consumers and lenders has led to 49,032 permanent mortgage restructures settled and dealt with and the people are able to meet those requirements. That is an increase of 3,855 accounts. The number of mortgages in arrears of greater than 90 days has fallen from 81,156 to 80,854, a small reduction but the number is continuing to fall.

The Central Bank has set clear targets and is monitoring them. Lenders are required to offer distressed borrowers sustainable solutions by the end of next year. The success of the banks in meeting these targets is measured by the Central Bank and by its residential mortgage arrears and repossession statistics and quarter three figures which will be produced in the next short period. The key point is to define and arrive at a solution, therefore, the first requirement is engagement between the borrower and lender. The first requirement is to find a solution. The Deputy seems to accept a figure in the newspapers today produced by Fitch. He seems to assume it is suddenly Government policy that it is the norm that repossessions take place when that is palpably not the case. He should not be putting out all those scares as we come towards the end of this parliamentary session.

It is Fitch's numbers Deputy Martin has, not those of Finches's.

Clearly, for banks, about which the Deputy has been talking about having a veto over solutions, bankruptcy is the end of the line for somebody who goes through that process. Banks get nothing out of that and therefore it is in their interests to settle.

Thank you, Taoiseach.

I want to make it perfectly clear that there is no strategy either to force or encourage repossession of people's family homes.

Wait until the Minister, Deputy Alan Shatter, gets going.

Words no longer mean anything in here. The Taoiseach can keep on denying whatever he wants to deny but it does not strike a chord with the reality on the ground. He spoke about the Central Bank targets. Does he know the figure for the threat of legal repossession under those targets? Sixty per cent of the sustainable solutions offered were with the threat of legal repossession. Those are his Central Bank targets. I am not making up that figure. That is official and on the record. The 13,000 letters sent out by AIB, Bank of Ireland and Ulster Bank are not my figures; they were formally presented to an Oireachtas committee.

The Taoiseach can rubbish Fitch if he wishes. We will give him that. I will not rubbish it but the Taoiseach can do so. These other figures are official figures-----

The banks are out of control.

They are out of control. Deputy Mathews is correct.

I have been saying it for a long time.

Deputy Mathews, please.

The point is that these figures-----

The Deputy has a new recruit in Deputy Mathews.

We will take this on just the substance and the facts, Deputy O'Donovan, not smart alec comments about individuals or personalities. I put it to the Taoiseach that the bottom line-----

Will it be Peter or Stephen who will be recruited first?

At least Peter is here.

Peter has left us.

Please stay quiet. Thank you.

These are official figures in terms of court proceedings issued during the quarter. In quarter two of 2013 the Taoiseach was looking at a figure of 270. In quarter three of 2013-----

Would the Deputy put his question?

-----he was looking at a figure of 1,830. Those are facts; they are figures that I did not make up but that are on the official record. Whatever record the Taoiseach wants to take officially, it is telling a story that repossessions are dramatically on the increase and that he has sat on the sidelines on this issue. The most he can say in a much hyped televised address to the nation is that the banks must do more to deal with mortgage distress, without explaining any detail in terms of what that means or what he intends to do about it. I ask the Taoiseach one more time if will he agree to the establishment of an independent mortgage resolution office for once and for all to get a genuine engagement going between banks and those who are in arrears because the other options are not being offered to any great degree, be they split mortgages, interest only or extension of loan repayment periods. Those options are not being offered to any great degree.

The answer is "No"; it is not necessary. The Deputy talks about sitting on the sidelines. Did I not hear him say on a radio programme some time ago that, unfortunately, the problem was that his Government did not bring in enough taxation and spent too much money publicly, which got us into this business? When the Deputy talks about denial, did I not see him vote against the exit from the bailout programme just last week? Do I not hear him now talking about a situation where Ireland should have-----

What vote was that last week?

-----facilities extended similar to those extended to Greece?

What vote was that last week?

The Deputy needs to be clear that we are not going back to that culture.

I just want to find out what we voted on last week. I did not realise that we had a vote on exiting the bailout programme.

The Deputy can deny it all he likes but the fact is that-----

Did we have a vote last week on exiting the bailout programme?

-----49,032 permanent mortgage restructures have been brought into place. That is an increase of almost 4,000 accounts. I am glad to note that Mario Draghi has said the banks need to do more. He echoes clearly what we have been saying from a Government point of view.

He does not have a clue.

Deputy Martin may laugh if he wishes.

Your banking expert does not agree with you.

They gave the power to the banks.

He was not a supporter of the personal insolvency legislation, which is now bringing about a change in attitude, with an understanding by banks that if they do not engage they do not have a veto at the end of the day.

Actually, come to think of it, the Taoiseach voted against the troika.

What about Mario Mathews?

There is a requirement for borrowers - and for lenders - to sit down with each other and engage in the first instance, and there are some who do not do that.

It is not happening.

Why does the Taoiseach not sit down with Mario Mathews and discuss the Government's banking policy?

I ask the Taoiseach to recognise the Chair. He is way over his time.

The Central Bank is the licensing authority here. It has set out its targets and objectives and how it intends to monitor them.

The party has a banking expert but it is ignoring him. It is a disgrace.

The banks are required to shape up. It is not the case that anyone wishes to see people lose their houses, but a certain way of ensuring it will happen is for people not to engage with their lenders in the first place. A variety of measures have been set out by Government action and legislation to help borrowers and they should avail of all these opportunities. Deputy Martin wants go down the road of setting up another independent analytical operation. This would take a very long time and in the meantime many of these distressed mortgages could be restructured permanently to the benefit of both sides.

Deputy Mathews could soon be Deputy Dooley's problem.