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New Mortgage Figures show complete lack of urgency from banks and government: Doherty

9 January, 2014 - by Pearse Doherty TD

Today’s figures are another indictment of a government which does not attach any urgency to the mortgage crisis. In the third quarter of 2013 there were over 140,000 homes in arrears

Sinn Féin finance spokesperson Pearse Doherty TD has said new figures released today by the Department of Finance indicate that the government and banks are showing a complete lack of urgency in dealing with the mortgage crisis.

Commenting on the figures, which are for November 2013, Deputy Doherty said:

“Today’s figures are another indictment of a government which does not attach any urgency to the mortgage crisis. In the third quarter of 2013 there were over 140,000 homes in arrears.

“There is now more than ever a need for an independent body to force the banks to get real and impose sustainable arrangements if they can't or won't.

“The new figures from November show that the six main banks have only put in place long term restructuring arrangements for 17% of those in arrears of over 90 days. Furthermore they show that the number of these restructurings that are not performing has actually increased for the second month in a row. So the banks are reluctant to enter long term arrangements and when they do they often are not sustainable.

“The banks are not playing their role in resolving this crisis and the government is letting them off the hook.

“The inclusion of legal letters and threats of repossessions as sustainable solutions under the Central Bank’s Mortgage Arrears Resolution Targets scheme makes a mockery of government claims to be putting pressure on the banks.

“I do welcome the slight decreases in overall arrears but nearly three years into this government and six years on from the banking crisis the fact that 83% of arrears cases over 90 days are not in permanent restructuring is proof of a lack of urgency

“There is no urgency from Minister Noonan or the government and the banks are taking advantage of this attitude to squeeze struggling homeowners. Sinn Féin has consistently said the banks cannot be left to their own devices and today’s figures show once again that a tougher line is needed with the banks.”

Change Cannot Be Stopped

The story of change is only beginning.

Sinn Féin will not allow Fianna Fáil and Fine Gael to waste the potential, the possibilities and the aspirations of our people.

A government led by Fine Gael and Fianna Fáil together does not represent the change that people voted for in February. In fact, it is an attempt to deny change, to protect the status quo and to continue with the same broken politics that has so badly failed workers and families

Sinn Féin will defend the change that the people voted for. We will continue to stand up for workers and families.

North and south, Sinn Féin is that change for a fairer, stronger and united Ireland.

Fully Supporting our Health Service and Frontline Workers

We need to ensure that we have all available capacity within our health systems, that we have sufficient ventilators and respiratory equipment, sufficient beds including ICU beds, and that our frontline workers are protected.  We need more testing and tracing and we need to ensure that we have all available capacity within our health systems, that we have sufficient ventilators and respiratory equipment, sufficient beds including ICU beds. 

The lack of protective equipment (PPE) for health workers, carers and others is causing a lot of concern – with frontline workers taking to the internet looking for resources and the government have stated that homehelp workers don’t need PPE. 

We need to see delivery of more testing across the island to tackle COVID-19 in line with the advice of WHO and European Centre for Disease Prevention and Control.

Income Support - Protecting Workers & Families

Sinn Féin’s proposals in the south would have guaranteed 100% of income up to €525 a week for workers and the self-employed who are laid off due to this crisis.  The Irish government’s proposal comes nowhere close to that and does not go far enough. €350 is not enough for people who have lost their jobs. 

While we are supportive of the wage subsidy scheme we believe that it must be targeted and not open to abuse - employers should have to make up the rest of the 30% of the salary – under the Irish government proposal employers could put in just one cent towards their employees pay.

There are also outstanding issues including: will workers have to pay tax on this income, now or at the end of the tax year; can workers who reside in the north but pay tax in the south be able to access the PUP payment?

Protecting Workers, Families and Businesses in the North

Finance Minister Conor Murphy has introduced protections for workers, small businesses and is lobbying the British Treasury to support the self-employed. He has brought in rate relief, including a three month rate holiday for all businesses and grants to support SMEs.

Communities Minister Deirdre Hargey has streamlined the benefit system to make it easy for those affected by COVID-19 to access benefits, including sick pay for workers.  She has also introduced support measures for the community and voluntary sector.

Affordable Housing

Fianna Fáil and Fine Gael cannot be trusted to deliver on housing. Their records speak for themselves.

Sinn Féin is committed to delivering the largest housing build in the history of the State.

Sinn Féin's "Fair Rent and Protection of Renters Bill" would prohibit rent increases on existing and new tenancies for three years and end the practice of tenants being evicted from buy-to-let properties on the grounds that a property is to be sold. These are vital protections that people need now more than ever.

In the north, Sinn Féin Communities Minister Deirdre Hargey has introduced measures to support those in the public housing sector and we have called for mortgage relief for homeowners and businesses.

Banks and the Insurance industry

It is outrageous that many people with a €200,000 mortgage will pay close to €2,000 more over the lifetime of their mortgage because the banks are not only charging interest but interest on the interest.  This is how the banks are intending to profit out of this crisis and it is outrageous. We want the Central Bank and the banks called in by the government and this to be stopped. We have been in touch with the Minister, the Central Bank and the banks on this. The fact is that they already charge twice the average EU interest rates for mortgage  - they need to waive all interest during the period of the emergency and not profit on it.

The behaviour of the insurance industry also needs to be tackled – they are failing to respond properly to this crisis.

The insurance industry is trying to find ways of avoiding providing coverage to businesses who pay very high insurance premiums and have been forced to close as a result of the crisis.  They need to be reined in by the Central Bank and taken to task over this behaviour. Nothing less than this is approach is required.