In recent years, banks have been selling loans, including owner-occupier and buy-to-let mortgages, wholesale to vulture funds at knock-down prices. Figures provided by the Department of Finance to the Joint Committee on Finance, Public Expenditure and Reform, and Taoiseach last week reveal that over €24 billion worth of loans have been sold to vulture funds at an average discount of 52%. While facilitating the sale of loans to vulture funds, the Government has designed a tax system that gives massive tax breaks to these funds, incentivising them to buy even more loans that the banks are more than happy to offload to them. The Government has provided the same tax incentives to other investment funds, some call them cuckoo funds, that are buying up property, pushing up house prices and squeezing first-time buyers out of the market. Vulture and cuckoo funds pay no corporation tax, no income tax and no capital gains tax in most cases. They do that because that was introduced in the Finance Bill with the support of Fianna Fáil, which is now crying foul. The only tax they pay is a dividend withholding tax which Sinn Féin championed, but they are still too many ways in which these funds can reduce or avoid paying that.

Last year, Ulster Bank sold a portfolio of loans known as Project Scariff worth €1.6 billion to a vulture fund called Promontoria Scariff. That portfolio consisted of approximately 3,600 owner-occupier loans and mortgages secured to 2,900 buy-to-let properties that are all in arrears. A company called Cabot Financial Ireland is now administering these loans on behalf of the vulture funds and has written to all buy-to-let mortgage holders who are behind in their payments demanding that all arrears be cleared within 30 days or a fixed asset receiver will be appointed. They are taking the assets in order to sell them. Clearing arrears in 30 days is impossible for the vast majority of these borrowers. This means those involved are taking the assets whether there is negative or positive equity. For those in positive equity, they will quickly see this disappear as receiver and legal fees are clocked up. The funds are not facilitating any arrangements with borrowers. Borrowers have stated that they will sell the properties with positive equity but are being told that they must clear the arrears in 30 days or a fixed asset receiver will be appointed. All of the tenants in these properties will be given notices to quit.

That to which I refer is a direct consequence of the Government's policy and the Minister’s rolling out of the red carpet to vulture funds, and pretending that it does not matter if a loan is sold to a vulture fund. Legally, these funds can do exactly what they are doing when they write these letters. The Central Bank is aware that the letters have been issued. It is time to clip the wings of these vulture funds once and for all. Given the actions of Cabot Financial and Promontoria Scariff, does the Tánaiste not agree?

I cannot discuss the cases of individual companies and letters that are being sent out without having seen them. The Central Bank rules that apply to our pillar banks also apply to other institutions that acquire loan books from the latter. The Central Bank has an important role to play in ensuring that there is a regulatory model that balances broader societal priorities with a financial environment that allows funds and banks to operate. That is what the Central Bank must do. The pillar banks are required to do what they are doing in terms of strengthening their balance sheets. However, we must ensure that when loan books are transferred from pillar banks to other funds, the Central Bank remains strong in terms of its role in ensuring that there is a regulated market which takes into account societal concerns and the concerns of tenants or property owners. It has to get the balance right. The Government and the Department of Finance work closely with the Central Bank in that regard.

It is obvious the Tánaiste does not have a clue what is happening or what the role of the Central Bank is and what it can or cannot do. There is absolutely nothing that the Central Bank can do to stop vulture funds from issuing letters to mortgage holders telling them to clear their arrears within 30 days or receivers will be appointed because there is no law to prevent that. The banks could also do that but they do not do so because they rely on customers' deposits and loans and have long-term interests here. Promontoria Scariff does not give two hoots, it only wants to make as much profit as it can and get out of here as quickly as possible. That is why it is organising strategic defaults among these customers. There are tenants living in these properties who do not know what is happening but they will soon find out when they are issued with fixed notices informing them to get out of their homes because the funds are not taking any solutions on board. These funds are not dealing with any arrangements. This is happening because the Government is allowing it to happen. It has allowed State-owned banks to sell family homes and buy-to-let mortgages to the vulture funds that do not give a damn about anything beyond making the quickest buck they can make. It is time to stand up and call this what it is. The Minister for Finance knows about this, as does the Central Bank. I have given them all the details. The reason I have named them now is because the owners of these properties and their tenants know that the only thing that can stop this is shaming Cabot, Promontoria Scariff and Cerberus for what they are doing to tenants, landlords and property holders in this State.

The Deputy just had an opportunity to raise these matters with the Minister for Finance when he was in the House

I did so yesterday.

The Minister just took questions before Leader's Questions. If the Deputy has particular cases to raise, I suggest that he raise them directly with the Minister for Finance.

I did so yesterday and the Minister did not answer.

The Deputy stated that the same rules apply to the pillar banks as apply to funds that take over loan books. The issue is not separate from one to the other, the issue is the rules and the law in this area. The Central Bank, as far as I am aware, has not asked the Government to look at changing that law. It is obviously something that requires ongoing discussion between the Department of Finance and the Central Bank to ensure that we get the balance right between ensuring that we have a property market that functions, a financial sector and banking system that works and that there is broader protection for society in general, home owners and renters.