Recommendations on Mortgage Arrears very welcome - O’Connor

Dublin South West T.D. Charlie O’Connor has welcomed the comprehensive recommendations made today in the interim report of the Expert Group on Mortgage Arrears and Personal Debt, published by the Taoiseach and Ministers Brian Lenihan, Éamon Ó Cuív and Eamon Ryan.

“These recommendations, which have been fully supported by the Taoiseach and the Government, are very welcome and are to be implemented without delay.  I think they will help a lot of people in Tallaght who have fallen behind in their mortgage payments.  A lot of people find themselves in really difficult circumstances at the moment, largely through no fault of their own.  They need assistance,” said Deputy O’Connor.

“The report has said that lenders should stop charging penalty interest or arrears charges to borrowers who are engaging with the banks to resolve their difficulties; that all lenders must develop a Mortgage Arrears Resolution Process and Framework; and the Department of Social Protection should make a number of changes to the Mortgage Interest Supplement Scheme.”

“I fully support the recommendations outlined in the report.  The time has long since come for the banks, which are being supported by the taxpayer, to show compassion to those in difficulty.  The Chairman of the Group Hugh Cooney has made it clear he wants improved communications and consistent policies applied by lenders to borrowers.  He is also encouraging all lenders to take immediate steps to implement the recommendations that relate to them.  I personally want to see that done without any delay.”

“I note that Mr. Cooney has said he believes reform of the Mortgage Interest Supplement Scheme will help in delivering a more equal and simplified scheme to get a greater balance between the lender, the borrower and the State.  I want to state clearly that this proposal has already been discussed at Cabinet and approved, and I welcome that,” added Deputy O’Connor.

“The Group is now moving on to look at broader structural changes such as modifying loans and the options for borrowers with unsustainable mortgages.  This final report is expected to be completed by the end of September.  This is very difficult but very important work and I wish the group well in their efforts to find fair and appropriate solutions for struggling homeowners.”

“I also want to say that I signed a motion which was tabled at a meeting of the Fianna Fáil Parliamentary Party this week on the issue of a property tax.  I want to make it clear to people in Tallaght who are hearing a lot of media speculation that a property tax is ‘planned’.  This is totally incorrect.  There are no plans to introduce a property tax.  The Commission on Taxation made a series of recommendations, one of which included a property tax.  The Government is right to look at and consider every recommendation made by the Commission.  It does not mean it’s going to happen and I really wouldn’t want to see a property tax levelled at the people who have been identified in today’s report as being in need of a lot of assistance,” concluded Deputy O’Connor who is Vice-Chairman of the Committee on Social and Family Affairs.