Concern among Coalition TDs over mortgage arrears measures

Fine Gael and Labour TDs and Senators expressed concern at separate private party meetings last night about the effectiveness of existing measures to help those in difficulty with mortgage arrears.

The parliamentary Labour Party unanimously backed a Bill from Longford-Westmeath TD Willie Penrose calling for the period of bankruptcy to be reduced from three years to one.

At the Fine Gael parliamentary party meeting Minister for Finance Michael Noonan said the Economic Management Council (EMC), which discussed the issue at its meeting on Wednesday, will examine further ways to assist people in mortgage difficulties.

There is concern across Government with the speed at which mortgage arrears are being dealt with and a feeling that the existing structures, such as the Personal Insolvency Service, are not acting fast enough.

There was widespread support for Mr Penrose's Bill at the Labour meeting. with chairman Jack Wall saying afterwards that efforts will be made to get the Longford-Westmeath TD's proposals enacted.

In 2012, former minister for justice Alan Shatter tabled legislation to reduce the period of bankruptcy from 12 years to three, but concern is growing about the slow rate of progress on the issue.

Tánaiste Joan Burton has said she favoured reducing the three-year term to oblige banks to engage directly with people in mortgage arrears.

“There was a sense that the Personal Insolvency Act 2012, while well-intentioned, has not proven to be as useful to as many families as had been envisaged and that this legislation would offer some remedy to that,” said Mr Wall.

Mixed views

However, it is unclear whether Mr Penrose's bill will attract support across Government. A spokesman for Taoiseach Enda Kenny noted earlier this week that bankruptcy had already been cut to three years in legislation which took effect in 2013.

“There are mixed views about this across Government, not just on a party basis, and we would like to see how the new term beds down and works in practice,” said the spokesman.

It is understood the EMC, at its meeting, also approved the proposal from Mr Noonan and Minister for Public Expenditure Brendan Howlin for a national economic dialogue involving talks with the employers, unions and other interest groups as part of a reformed budgetary process.

The Coalition is insisting it will not be return to full-blown social partnership but will allow for grater inputs into the budget.

Minister for Jobs Richard Bruton, long opposed to social partnership, said he has been given assurances that the national economic dialogue, expected to take place in June, will not make any decisions on pay.

“What is reassuring is it has been made clear now that pay is not part of that process,” said Mr Bruton. “I am on record over a long period that social partnership was part of the problems we suffered. It created rigidities in the Irish system, and inability to reform and that damaged our capability of dealing with both the success and the crash.”

Mr Bruton raised the issue of pay with his Cabinet colleagues earlier this week.

“People recognise that still a lot of employers are going through difficult restructuring.”

He said Mr Noonan and Mr Howlin will outline the detail of the process in the coming weeks.