Dáil Éireann Debate, Thursday - 7 July 2016
72. Deputy Mattie McGrath asked the Tánaiste and Minister for Justice and Equality to support proposals to issue a moratorium on house repossessions; her plans to establish a special court to deal with the issue of mortgage arrears and mortgage debt; and if she will make a statement on the matter. [20248/16]
View answerAs the Deputy will know, the commitments in the Programme for Government, including those relating to mortgage arrears, are under active consideration by the Government as part of the Government's housing strategy. An action programme will be announced in the coming weeks.
The Deputy will be aware that the proposal for a moratorium on house repossessions was included in the range of recommendations in a recent Report of the Oireachtas Committee on Housing and Homelessness. The recommendation was that, subject to the advice 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, is being considered by the Government in the context of the formulation of its action plan.
The Deputy will be aware from my response to question 28 of 22 June that the Government is already preparing a range of measures to support people in mortgage arrears. In particular, intensive work has been done on preparing a new scheme to provide distressed homeowners with access to independent legal and financial aid and advice to help resolve their mortgage arrears. 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 Insolvency Service Ireland, the Legal Aid Board, the Citizens’ Information Board and the Money and Budgeting Service (MABS). It 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 Personal Insolvency Practitioner 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.
