FF unveils package of radical proposals to protect family homes and address personal debt crisis
The impact of the recession and financial crisis has placed huge strain on many people, particularly young families, who bought property during the boom and who now find themselves in radically different circumstances.
Latest figures from the Central Bank show that 11% of mortgages in Ireland are either in arrears of greater than 90 days or have been restructured. In other words, at least one in ten mortgages is in trouble.
Thankfully, while many people are struggling with their mortgage obligations, the number of repossessions in Ireland is very low. Of over 780,000 residential mortgages in Ireland, less than 700 are in possession of the lender.
When in government, Fianna Fáil was proactive in ensuring that family homes were protected as much as possible. One of the principal advocates for those in mortgage difficulties was the Cathaoirelach of Ógra, Senator Thomas Byrne who saw at first hand the stress many of his young constituents in the Dublin commuter belt were under.
The low rate of repossessions is testament to the safeguards the party put in place in government, as well as being a reflection of the reality that it is rarely in the interests of a financial institution to repossess given the current climate.
Given that mortgage interest rates seem to be destined to rise considerably in the years ahead, Fianna Fáil is determined to continue to place the protection of family homes at the centre of our economic policy. Yesterday, our leader, Micheál Martin launched our party policy on protecting family homes and reforming personal debt.
At the heart of this policy is the principle that keeping people in their family home makes for good social policy. It proposes specific measures to put the protection of the family home at the centre of the State’s approach to mortgage arrears and personal debt. It also proposes a comprehensive overhaul of Ireland’s hopelessly outdated personal insolvency legislation.
As part of our party’s proposals, Fianna Fáil published two pieces of legislation, the Family Home Bill 2011 and the Regulation of Debt Management Advisors Bill 2011. These Bills will be proposed by Fianna Fáil in the Dáil in the coming months.
While we must be aware of the dangers of allowing those who borrowed recklessly from getting off the hook, the reality is that the vast majority of those in mortgage difficulties find themselves in that situation through no fault of their own. Fianna Fáil’s policy protects those people so that they can discharge their obligations in a manageable way.
This policy document is a practical manifestation of the responsible opposition that Micheál promised at the start of the Dáil term. Hopefully, the government will accept it as such and vote in favour of Fianna Fáil’s proposals when the Bills come before the Dáil.
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