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Vol. 743 Wednesday, No. 2 12 October 2011 DÍOSPÓIREACHTAÍ PARLAIMINTE PARLIAMENTARY DEBATES DÁIL ÉIREANN TUAIRISC OIFIGIÚIL—Neamhcheartaithe (OFFICIAL REPORT—Unrevised) Dé Céadaoin, 12 Deireadh Fómhair 2011. Leaders’ Questions ……………………………… 403 Order of Business ……………………………… 410 Debt Settlement and Mortgage Resolution Office Bill 2011: First Stage …………… 415 EU Summits: Statements …………………………… 415 Central Bank and Credit Institutions (Resolution) (No. 2) Bill 2011: Order for Report Stage …………………………… 432 Report and Final Stages …………………………… 432 Ceisteanna — Questions Minister for Jobs, Enterprise and Innovation Priority Questions …………………………… 446 Other Questions …………………………… 455 Order of Business: Motion …………………………… 465 Topical Issue Matters ……………………………… 466 Topical Issue Debate University Rankings …………………………… 467 Oibreacha Athchóirithe Scoileanna ……………………… 470 Adult Education ……………………………… 473 Grant Payments ……………………………… 475 Message from Select Committee ………………………… 478 Private Members’ Business Community and Voluntary Sector: Motion (resumed) ………………… 478 Questions: Written Answers …………………………… 507 DÁIL ÉIREANN ———— Dé Céadaoin, 12 Deireadh Fómhair 2011. Wednesday, 12 October 2011. ———— Chuaigh an Ceann Comhairle i gceannas ar 10.30 a.m. ———— Paidir. Prayer. ———— Leaders’ Questions Deputy Micheál Martin: The interdepartmental mortgage arrears group report is being pub- lished this morning by the Minister for Finance. I understand the report recommends an inde- pendent mortgage advice service to guide mortgage holders and, in addition, it also suggests the early introduction of new non-judicial arrangements and describes this as vital. Yesterday in the House the Taoiseach indicated he would welcome constructive proposals on the issue. In the interests of offering practical urgent assistance to people in mortgage arrears and debt, Deputy Michael McGrath is publishing a Bill today, the debt settlement and mortgage resolution office Bill 2011. The Bill is ready to go and is based on the Law Reform Commission report of last December but extends its recommendations to include mortgages as well. It is a constructive proposal and has the merit of giving immediate implementation to a number of the recommendations that may or may not be contained in the report. Deputy Emmet Stagg: It is a pity Fianna Fáil did not do it last year. Deputy Timmy Dooley: We got no co-operation from the Labour Party. Deputy Stagg would not support us. Deputy Michael McGrath: We go not no support from the Labour party. Deputy Micheál Martin: Yesterday in the House the Taoiseach said he would welcome con- structive proposals on an issue that is not a laughing matter or a matter for barracking but an issue that is of real concern to hundreds of thousands of people who are very worried about their mortgage arrears and household debt and who cannot see a future ahead of them. Deputy Emmet Stagg: Fianna Fáil created the situation. Deputy Micheál Martin: It is also a significant drag on the economy, particularly the domestic economy. Deputy Michael McGrath’s Bill would legislate for an independent debt settlement office, a statutory, objective office that would provide a mechanism to resolve household debt issues. I ask the Taoiseach to give the Bill serious consideration. It will be published today and taken next week in the House and I ask the Taoiseach to accept and move forward with its recommendations. 403 Leaders’ 12 October 2011. Questions The Taoiseach: I commend Deputy Michael McGrath on his initiative in tabling a Bill on behalf of the party about a matter that is very serious. The Minister for Finance will publish the report on the mortgage situation today at 11 a.m. Yesterday I said that what I would like to see happen here is that every Member of the House would have the opportunity to make a contribution both on the mortgage report and, in this case, on the Deputy’s Bill and also on any other initiatives, ideas or proposals that people have that are not currently in practice or contained in this report. I do not know if the Deputy has a leaked version of the report or if Deputy McGrath’s Bill includes all of the measures that will be in it when it is published at 11 o’clock. Deputy Micheál Martin: It was on “Morning Ireland” this morning. Deputy Michael McGrath: It was all over the Sunday Independent. Deputy Billy Kelleher: Deputy Ciarán Lynch practically wrote it. The Taoiseach: We are serious about the best possible response for those who cannot meet their mortgage repayments, with 800,000 mortgages in place and 100,000 having difficulties, and it is in respect of those that the commission looked at the question and made recom- mendations. I want to hear the response of all Deputies on the best solution. The Minister for Finance is giving everyone the opportunity to have their views expressed and will take all of those, including existing structures, the contents of the report and any other new ideas, and draw them all together and give a Government response. The Deputy will publish his Bill today but I do not know what is in it. There will be a two day debate next week on the mortgage report and taking that in conjunction with the Deputy’s Bill, we can have a proper discussion of the situation facing so many people. I cannot second guess what might be in Deputy McGrath’s Bill, no more than people can second guess the implications of the contents of the recommendations in the report. I assure the Deputy that the Government is taking this seriously and will act quickly. In the interests of everyone who sees constituents with such problems we should act swiftly and responsibly. I would like to hear the views of Members of all parties about this. Deputy Micheál Martin: Deputy Michael McGrath’s Bill is based on the report of the Law Reform Commission of last December, which the Government has had for the last six to seven months. He has used that to craft a detailed Bill but has extended it to cover mortgages. The Taoiseach asked if someone had access to a leaked report. With respect, the Keane report should be in every Member’s in-box this morning before the formal launch at 11 o’clock. (Interruptions). Deputy Micheál Martin: Why did the Taoiseach mention leaked then? There should not be any issue with leaking, it should have been given to every Member in advance of its publication. Deputy Paul Kehoe: Deputy Martin is a quare man to talk about publishing reports. Deputy Micheál Martin: Two specific commitments were given in the programme for Government. It was stated that the negative equity generation would be assisted through enhanced mortgage interest relief. Deputy Bernard J. Durkan: Negative equity created by Fianna Fáil. Deputy Micheál Martin: That was to happen in July but it did not happen. The Taoiseach also committed that interest increases arising from ECB interest rates would be absorbed by 404 Leaders’ 12 October 2011. Questions the banks, not mortgage holders. This has not happened and there have been two ECB increases. How quickly will the Government act on this report and how quickly will legislation be introduced as a result of this report to give relief to the 800,000 people the Taoiseach mentioned? We have the legislation ready and it is based on substantive work undertaken. In addition to what was done already, I would urge the Taoiseach not to be political about this like all his cheerleaders. He should be sensible and practical and enact this Bill. Deputy Simon Harris: The negative equity generation was created by Fianna Fáil Deputy Bernard J. Durkan: If Fianna Fáil had not ruined the country there would be no need for this. An Ceann Comhairle: Could we cool down for a minute? Deputy Simon Harris: We would not need legislation if Fianna Fáil had not caused the problem. Deputy Micheál Martin: How many leaders does Fine Gael have? Deputy Jerry Buttimer: At least we have a leader over here. Deputy Robert Troy: Fine Gael did not want him a couple of years ago. Deputy Tom Hayes: Donie Cassidy tells Deputy Troy everything. (Interruptions). Deputy Michael Healy-Rae: It is no laughing matter. The Taoiseach: The Keane report came from a decision of the Economic Management Council, EMC, that a commission should look at the question of mortgage over-indebtedness here. Deputy Micheál Martin: I have no difficulty with that. The Taoiseach: That is why it has been produced. I am not suggesting that leaked documents are being made available. Deputy Micheál Martin: The Taoiseach did suggest that. The Taoiseach: I am merely suggesting to the Deputy that it is pure coincidence that Deputy McGrath produced and published his Bill today. Deputy Micheál Martin: Is the Taoiseach saying he wrote the Bill last night? The Taoiseach: Deputy Martin asked when the Government will act. Following the EMC recommendation, the Government commissioned the Keane report, which will be published in 20 minutes. The House will have a two-day debate on the report next week. I have already said the Minister for Finance will draw down all the recommendations and any other initiatives put forward by Members, and will act swiftly on them. The banks will have to play their part in this. The taxpayers have forked out to recapitalise these banks. In many cases people over- borrowed from banks and lending institutions and were over-lent to. Because of the economic decline and the impact of the recession, 100,000 mortgage holders now have difficulties. Some cannot pay, some have real struggles to pay and there are those who do not want to pay. 405 Leaders’ 12 October 2011. Questions [The Taoiseach.] I want everyone to have an opportunity to say his or her piece on this matter and to put forward constructive suggestions that are in the interest of alleviating the problem for those who are suffering and are a cause of concern at present.