The Minister for Finance, Mr Michael Noonan, TD, today announced that the Government had approved the publication of the Report of the Inter-Departmental Group on Mortgage Arrears. On publication of the Report, Minister Noonan stated:
"The Government’s Economic Management Council instructed that an interdepartmental group be established to consider further measures to alleviate the increasing problem of mortgage over-indebtedness.
In establishing the group, the Government set two core objectives:
· To assist those facing real difficulties to remain in their own homes where appropriate, and
· To ensure a distinction between those who cannot afford to pay their mortgages and those who choose not to pay their mortgages.
The report’s wide ranging and significant measures to address mortgage difficulties fulfils these objectives.
Work is underway to implement key elements of the report:
Minister Penrose will shortly launch two mortgage-to-rent schemes in line with the report’s recommendations. These will operate on a pilot basis initially, subject to prompt review ahead of wider roll-out. Under each scheme, households in extreme mortgage distress who are eligible for social housing will be able to remain in their homes as social housing tenants with either the lending institution or a housing association taking ownership of the property. Minister Penrose’ officials will be kick-starting this process next week.
Minister Shatter has already undertaken extensive work on the Heads of a Personal Insolvency Bill as set out in the report and these will be published shortly.
Minister Noonan has instructed the Banking Division of the Department of Finance to begin discussions with the banks to ensure speedy implementation of the measures set out in the report.
Minister Noonan said:
"This report sets out important measures to address the problem of mortgage difficulty. It is incumbent on the State authorities and the banks to fully consider these and for the financial institutions to bring forward other innovative solutions which help address this difficult and complex problem.
The Government will now propose that the Dáil have an opportunity to debate the findings and recommendations of the report and will make time for a debate next week. This will give all sides of the House the opportunity to contribute in a constructive and realistic manner to the deliberations on this important issue."
The Minister for Finance and the Minister for Justice and Equality will form an implementation strategy to be set out at the conclusion of the Dáil debate. This implementation strategy will set out the necessary steps to put into effect all of the measures that are deemed feasible.