It is accepted nationally and internationally that the scale of mortgage arrears continues to be a major problem, and is one that impedes our economic development and impacts socially on the lives of tens of thousands of people the length and breadth of the country. The Government's approach has been to introduce a mortgage arrears code of conduct in which it gave a veto to the banks. The alternative Fianna Fáil Party policy was to establish an independent mortgage resolution office, but the Government did not buy into that policy. Some considerable time later, we now see that the code of conduct for mortgage arrears is not working and is not serving the interests of borrowers.

A very interesting report was published today by the Central Bank. It examined the activities of seven lenders and found they are in breach of the code of conduct. Can the Taoiseach tell us what he is going to do about that? What actions will the Government take to ensure that the banks comply with the code of conduct? In the past the Minister for Finance, Deputy Michael Noonan, has said there are no sanctions that can be applied to banks if they do not co-operate with the code of conduct. Yet, those same banks are currently trying to recruit new mortgage holders. It is, therefore, in the interests of current mortgage holders that some penalties are applied to the banks which breach the code of conduct. It is also in the interests of those who draw down mortgages from these lenders to know the culture of the lender with which they will deal. Will the Government ensure that banks which have breached the code of conduct are named and shamed and that some penalty is imposed on them?

It is a good question. The Government set out its view on mortgages and the code of conduct some time ago. As the Deputy is aware, the Government recently made the decision to bring about further changes to the insolvency regime to deal with further facilities for mortgage holders.

It is utterly unacceptable that any lender would breach this code of conduct for mortgages.

It is widespread.

The position is the Central Bank regulates the lenders. The Central Bank is now engaged in part of the process in which it delivers on independently of the Government. The code of conduct for mortgages is very clear and very fair in respect of those who are borrowers from any of the institutions. The Deputy asked what will happen next. The process is under way and this report comes from the Central Bank, which is the regulator. The Central Bank obviously has gone through examples of where the code has been breached by lenders. It is now the function and the responsibility of the Central Bank to set out whatever sanctions it desires to impose on these lenders.

Those sanctions will be publicly announced because it will be a public decision. It is not a case of the Minister for Finance setting out the sanctions. The regulator is the Central Bank. It conducted a report and identified breaches of the code of conduct by the lenders. It is very serious for borrowers affected to have this undue pressure put upon them. The next stage of the process is for the regulator, namely, the Central Bank, to set up the sanctions it intends to impose on those lenders in the first place. Those decisions will be publicly announced because it is public information.

Time is of the essence because the longer this matter is deferred, the deeper into arrears the people in question will get. People need solutions now. Will the Taoiseach give an indication of the timescale that is involved in the solution that he has put before us?

I am interested in the fact that the Central Bank stated there is a problem with seven lenders but it does not name them. I contend the public is entitled to know and that the public could then take action itself and make its own decisions had it that information. The Taoiseach and his Government gave the banks a veto in the insolvency legislation. Today, it would appear the Central Bank is giving further cover to the banking system by withholding this information. I understand the Central Bank Act provides for information to be disclosed where it is in the interest of the consumer. Is it not in the interest of the consumer that this information be put into the public realm? What timescale is the Taoiseach talking about before this happens?

Stand up to the banks.

What is being done about local authorities which are also lenders and which, in my experience, are proving to be as ruthless in dealing with borrowers in difficulties as any of the banks? Who is overseeing the activities of local authorities as lenders which are forcing people out of their family homes?

The Central Bank has stated that it has sufficient powers to manage this process effectively. I hope the Central Bank, as the regulator, will deal with this matter publicly, swiftly and effectively. It has carried out examinations through its rigid inspection regime. There will be sanctions for any breaches in the code of conduct that have been identified. The sanctions and the institutions involved will be known. The inspection examined compliance under the resolution of arrears, transparency, fair process and the process of improvement and controls. I do not speak for the Central Bank but, following on from its own statement, it has the powers and the legitimacy to manage this effectively. I hope it will now do so swiftly, effectively and publicly because these are public decisions.

When personal insolvency practitioners made arrangements that were not acceptable to the banks, that is when a bank veto applied. The Government intends to change that and legislation is being prepared to that effect.

In respect of local authorities, was the Deputy referring to borrowing or cases involving repossession? The Minister for the Environment, Community and Local Government would be interested in examples of what the Deputy said about local authorities and the repayment of loans borrowed some time ago or where they are pursuing people for the non-payment of mortgage arrears. Clearly, the situation is being dealt with under the insolvency regime. This has to be amended now because of the actions of some of the banks and that legislation is being prepared to that effect.