SF charge of 'long-fingering' distressed mortgage law rejected

TÁNAISTE EAMON Gilmore has told the Dáil that measures to help those in mortgage difficulties will be published as soon as possible.

He insisted the Government was concerned about the difficulties in which mortgage holders find themselves when these matters come before the courts and said measures to assist mortgage holders were being worked on.

Mr Gilmore rejected allegations that the Coalition was “long-fingering” legislation for those in mortgage distress.

Sinn Féin deputy leader Mary Lou McDonald said the Government was swift to pump billions of euro of taxpayers’ money into banks and she accused the Government of failing so far “to act to protect” the interests of distressed debtors and mortgage holders.

The Dublin Central TD highlighted comments by Master of the High Court Edmund Honohan who had, she said, set out very clearly the catastrophic consequences of “aggressive banks pursuing desperate people laden with debts they cannot meet”.

Ms McDonald said the law was inadequate. “It is agreed by Government that we need an overhaul of bankruptcy and we certainly need mechanisms to deal with debt resolution,” she said.

Mr Honohan had called for the law to be updated to protect those who could not meet their mortgage debts. He also called for an element of debt forgiveness.

He sharply criticised banks and creditors for pursuing “to the bitter end” debtors who could not pay, just to write off debts in order to gain a tax benefit. He said that such meaningless “accountancy exercises” caused social disquiet and was driving some to suicide.

Ms McDonald claimed the heads of the Bill – its major elements – had not yet been agreed for the personal insolvency Bill. She called on Mr Gilmore to give a commitment that the legislation would be published “with the haste it requires”.

Mr Gilmore repeated that a personal insolvency Bill was planned for next year, “some interim measures are planned for the Civil Law (Miscellaneous Provisions) Bill that is in the course of being drafted with a view to publication as soon as possible this year”.

Last year then minister for justice Dermot Ahern introduced a miscellaneous provisions Bill to reduce the bankruptcy period from 12 to six years.

Ms McDonald described the 2012 publication date for the insolvency Bill as far too late and accused the Government of long-fingering the legislation.

Mr Gilmore suggested the Sinn Féin TD should “listen instead of having predetermined what the answer was going to be”, while repeating that interim measures would be brought forward. He said a personal insolvency Bill would “provide for a new framework for settlement and enforcement of debt and for personal insolvency”.