Dáil Éireann Debate, Tuesday - 21 June 2016
96. Deputy John Lahart asked the Tánaiste and Minister for Justice and Equality if she will urgently legislate for a moratorium on family home evictions until such time as a reasoned solution to the family housing crisis is formulated by the Houses of the Oireachtas; and if she will make a statement on the matter. [17238/16]
View answerThe position is that the Oireachtas Committee on Housing and Homelessness has recommended in its recently-published report that, subject to the advices of the Attorney General, the Government should introduce legislation for a moratorium on home repossessions until such time as the Government’s proposals in relation to housing and homelessness are in place. I can confirm that this recommendation, together with the Committee's other recommendations, will be considered by the Government in the context of the formulation of an action plan to implement the Programme for Government commitments in relation to mortgage arrears.
I wish also to take this opportunity to draw the Deputy's attention to the reform that I introduced in the Personal Insolvency (Amendment) Act 2015 in order to further assist insolvent homeowners in mortgage arrears. The Act has introduced a new ‘court review’ process applicable in cases where creditors such as a mortgage lender refuse a proposal for a Personal Insolvency Arrangement drawn up to resolve the borrower's debts, including the mortgage on their home. Previously, the creditors’ rejection was final; under the new provision, the borrower can seek review by the court of the creditors’ refusal. The court will then consider the borrower’s proposal using the criteria set out in the amending legislation and may, if those criteria are satisfied, impose the Personal Insolvency Arrangement proposed by the borrower. The review provision came into effect on 20 November 2015 [SI No. 514/2015]. To coincide with its introduction, the Insolvency Service of Ireland (ISI) held a number of training sessions around the country with Personal Insolvency Practitioners (PIPs).
All applications for review under the amending legislation are notified to the ISI. It has advised that 51 review applications have been notified to it as of 17 June, 4 of which have been approved and 2 of which have been rejected. A further 5 applications have been withdrawn and 5 struck out by consent, arising, it seems, from settlement negotiations between the parties. In a further 27 cases an initial hearing has been held but new affidavits or additional material has been requested and the cases have been adjourned to allow for filing of this material in advance of a full hearing. My officials will, of course, be carefully monitoring the operation of this important reform.
The Court review process is being complemented by a new scheme which provides access to independent legal and financial aid and advice for those in home mortgage arrears which I announced earlier this year. Intensive work on implementing this Aid and Advice Scheme has been under way across Government Departments and other relevant bodies. This work has been led by my Department and by the Department of Social Protection, with the participation of the ISI, the Legal Aid Board, the Citizens’ Information Board and the Money and Budgeting Service (MABS). The Scheme builds on a network of Dedicated Mortgage Arrears Advisers established in MABS offices across the country which was announced in December 2015.
MABS will act as a single gateway to the new Scheme for those who are deep in debt and at risk of losing their homes due to mortgage arrears. MABS advisers will advise these borrowers on options for returning to solvency and remaining in their homes as far as possible. This may involve obtaining financial advice from a PIP or accountant and legal aid and advice from a solicitor. The Scheme will also provide for support for insolvent borrowers in repossession proceedings under a new ‘duty solicitor’ service operated by the Legal Aid Board. Work on implementation is almost complete and I expect the Scheme to become operational in the near future.
