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Mac Lochlainn calls for a genuine resolution to mortgage debt crisis

7 November, 2012 - by Pádraig Mac Lochlainn


Speaking during the concluding stages of the Personal Insolvency Bill today, Sinn Féin Justice Spokesperson Deputy Pádraig Mac Lochlainn said that, while he welcomed aspects of the bill, the Government’s response to the mortgage crisis is “clearly inadequate.”

The Donegal North East TD said;

“This bill will be a disappointment for the overwhelming majority of families that are in mortgage distress as it still allows for the banks having complete power in relation to personal insolvency arrangements.

“The central problem with this bill is the bank veto over personal insolvency agreements. We have tabled amendments to this legislation in order to remove the bank veto capacity. While the debt settlement proposals contained within the bill will help some, it won’t help large numbers of families who are struggling with high levels of personal debt.

“Further to this, we tabled an amendment to reduce the amount in the eligibility criteria for a Personal Insolvency Arrangement from €3 million to €1 million. This bill should not cater for those who were reckless commercial buy-to-let landlords, and those who took massive risks, it should protect those who are struggling with the debt of the family home.

“While we support this bill being passed on the basis that it will assist some people in difficulty, we are simultaneously calling on the Minister to look at constructing a more comprehensive legal framework that will genuinely resolve the mortgage debt crisis.”

ENDS

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