Debt is the single biggest issue facing the citizens of this country. I publicly congratulate the “Ballyhea Says No” group which has raised this issue and kept it before the public over a long period of time, marching every week. I also congratulate the other groups around the country linked with “Ballyhea Says No” who are doing the same thing, including “Clonmel Says No”, which marches every Saturday.
The motion effectively calls on the Government to seek a write-off of the promissory note from the European authorities. I support the motion because the Government has not even sought that but I am under no illusions that asking alone will bring about a positive response. Already, the Tnaiste’s game changer has been blown away by the German authorities. Not alone will there be no agreement by other eurozone countries to shoulder any of the legacy bank-related debt of the Irish State, they have made it clear that they will not shoulder any Irish bank debt in future. There will be no serious talks about mutualising the eurozone bank debt until we stop honouring the promissory note now and in the future. It is only then that real talks will start.
The EU has placed a huge millstone around the necks of the Irish people. That millstone is called debt, debt and more debt. The bank debt of 64 billion is not the debt of the Irish people and we are not responsible for it.
It is the debt of speculating European banks and finance houses. These institutions must be made to shoulder it. Ireland must get a write-down, as the debt is a crushing burden on us, our children and our grandchildren. It has created considerable austerity. We need only consider the large unemployment and emigration figures, cuts to services, tax increases, social welfare, pay and pension cuts, increased levels of poverty, particularly among children, and high levels of mortgage distress. This is what the EU has done to Ireland, our children and our grandchildren. It must be made to declare bank-related debt a burden on all countries in proportion to their GDPs. In other words, the debt must be mutualised.
In the matter of bank debt, the EU has been singularly unfair to Ireland. The Commission’s data agency, EUROSTAT, has produced shocking figures. Ireland has taken a large hit for the rest of Europe. In terms of the cost of the banking crisis to individual member states, Ireland is at the head of the queue. The crisis has cost us in excess of 41 billion. It is worse when one views it as a percentage of GDP. We are at the head of that posse as well. The bank crisis cost us 25% of our GDP. The nearest member state in this regard is Latvia with 3%. While Ireland has 0.9% of the EU’s population and our economy represents 1.2% of the EU’s GDP, Ireland has paid 42% of the total cost of the European banking crisis. It gets worse when one considers it on a per capita basis. European statistics show that the banking crisis has cost every individual in this country 8,981. The average across the EU is 192.
Matters are actually worse, as these figures do not take into account the 22 billion from the National Pensions Reserve Fund, NPRF, that was used to address the banking crisis or the 30 billion that NAMA paid for bank loans. Our money is streaming out of the country, as are our people, including many who have been expensively educated and are highly qualified.
The claim that we will recover our sovereignty when we exit the formal bailout is a sick joke. If we cannot force the mutualisation of bank debt, we will pay approximately 4.5 billion per year under the fiscal treaty. All of the indications are that there will be no significant growth in the near future. This situation occurred previously in Irish history when British landlords bled the country dry and Michael Davitt launched a Plan Of Campaign to start the ultimately successful land war. James Connolly, who we remembered in this centenary year of the Lock-out, wrote of the need for the reconquest of Ireland. We need a new plan of campaign and a new reconquest of Ireland. Sadly, the three main political parties are in league with the EU, acting through the troika, and have sold out our economic and political sovereignty. However, I am confident that the current generation will not be found wanting when it comes to re-establishing this country’s well being, independence and sovereignty.
Séamus Healy (Tipperary South, Independent)
Up to 30,000 families face eviction due to the Government’s failure to protect them. Mortgage holders will not qualify for the insolvency procedures because they have no disposable incomes or disposable assets. They have fully engaged with their lenders. They are not strategic defaulters. Their only assets are their family homes. They hold modest mortgages, many of less than €100,000 and almost all of less than €200,000. They are all low-income families, many headed by unemployed people.
They are in this position through no fault of their own. They took out mortgages when employed to put roofs over their heads and to provide for their families. Now, they are unemployed because of the reckless activity of the entire Irish establishment, including the Central Bank, the banks, the Government, their cheerleaders in the media and the State research bodies that predicted a soft landing.
The same banks that destroyed society and that we bailed out are threatening these genuine mortgage holders with eviction. I have a letter from one of the pillar banks to such a mortgage holder. It outlines the options available to the person, including voluntary sale and voluntary surrender. In the event of a shortfall, the person would remain liable under all of the options for the outstanding debt, including accrued interest, charges and legal, selling and related costs. The bank would always seek the gross sale proceeds.
The letter threatened eviction. The bank noted that—–
Barrett (Ceann Comhairle; Dún Laoghaire, Ceann Comhairle)
The Deputy is limited to two minutes.
Séamus Healy (Tipperary South, Independent)
—–forbearance was not appropriate, given the fact that the person’s financial position was unsustainable, and that, if the repayments due were not met and arrears accumulated on the mortgage, the matter would, regrettably, be referred to solicitors.
Such conduct from banks that we have bailed out is outrageous, unjust and unfair.
Tommy Broughan (Dublin North East, Labour)
Hear, hear.
Séamus Healy (Tipperary South, Independent)
Will the Government legislate urgently to enable these unfortunate and blameless families to stay in their homes or will it continue to allow the banks to deploy the modern equivalent of the battering ram?
Deputies:
Hear, hear.
Enda Kenny (Taoiseach, Department of An Taoiseach; Mayo, Fine Gael)
The position is that I would say all parties in this House elected by the people do not want to see anybody thrown out of their home. The sad fact is, however, that, in a number of cases, it is going to be very difficult for some people to hold on to their homes – some.
Séamus Healy (Tipperary South, Independent)
Up to 30,000.
Enda Kenny (Taoiseach, Department of An Taoiseach; Mayo, Fine Gael)
The Government has put in place all of the mechanisms to help every person who is a mortgage holder who has got a problem. There are 47,000 restructured permanently already. The numbers are being assessed by the Central Bank. Despite the fact that the party opposite decried the personal insolvency agency, claiming that banks had a veto and that this would result in thousands of people being evicted, the first evidence of cases going through the personal insolvency agency do not seem to indicate that.
Robert Troy (Longford-Westmeath, Fianna Fail)
Does one case tell the story?
Enda Kenny (Taoiseach, Department of An Taoiseach; Mayo, Fine Gael)
As these cases are worked through, we will have evidence of the actual situation. If those hard-working people who, through no fault of their own, find themselves in this position of having a problem with their mortgage, the first thing they must do is engage with the lender.
Séamus Healy (Tipperary South, Independent)
They are fully engaged. They have done everything.
Enda Kenny (Taoiseach, Department of An Taoiseach; Mayo, Fine Gael)
There are requirements and codes and targets set out and—–
Peter Mathews (Dublin South, Independent)
The lenders should engage with the customers.
Enda Kenny (Taoiseach, Department of An Taoiseach; Mayo, Fine Gael)
—–being implemented by the Central Bank to work out a solution in each and every case. The Governor of the Central Bank has been very clear about the targets set by the Central Bank for banks and lending institutions to work out solutions in each and every case. It is perfectly obvious that the people who are applying for mortgages and who are in a position to purchase houses are not going to get caught in the same trap as those who have gone before them.
Despite much cynicism, the Government has acted responsibly to put in place codes of practice, targets and legislation to help the very people Deputy Healy spoke about. If they took out a mortgage and found that because of unemployment or other changed circumstances they are unable to pay, there is now a solution for every case. It means, however, that in every case those concerned must work out what solution is in their best interests. We do not want to see anybody lose their homes.
Séamus Healy (Tipperary South, Independent)
What is the Taoiseach doing for this specific group of people?
Enda Kenny (Taoiseach, Department of An Taoiseach; Mayo, Fine Gael)
Some cases I have come across are very difficult.
Seán Barrett (Ceann Comhairle; Dún Laoghaire, Ceann Comhairle)
Now the Deputy can speak properly. He does not need to interrupt.
Séamus Healy (Tipperary South, Independent)
If the Taoiseach would answer the question we would have some basis for discussion.
Seán Barrett (Ceann Comhairle; Dún Laoghaire, Ceann Comhairle)
Please proceed, anyway.
Séamus Healy (Tipperary South, Independent)
While the Taoiseach continues to put his head in the sand and washes his hands like a Pontius Pilate act, many of the people I am talking about will end up on the streets, as Focus Ireland said this morning. It is certain that families evicted from their homes will end up on the huge local authority housing waiting lists. Some 110,000 families are already on those lists and more will join the end of that queue. It is also certain that they will be entitled to rent supplement at a significant cost to the State.
The mortgage to rent scheme would allow these families to stay in their homes on a rental basis and also give them an option of repurchasing in future if their financial circumstances improve. Surely that scheme would be both socially and financially beneficial to families, the State and even to the banks. However, even though we bailed out the banks they are resisting this scheme. The Government seems to have abandoned the scheme. There have only been 60 approvals in that scheme since it was introduced.
Will the Taoiseach personally intervene with the banks to ensure that they fully operate the mortgage to rent scheme? That would give some hope to the 30,000 families involved who are facing eviction. This is a huge problem.
Enda Kenny (Taoiseach, Department of An Taoiseach; Mayo, Fine Gael)
Some 70,000 mortgages have been restructured.
Séamus Healy (Tipperary South, Independent)
I am not talking about those.
Enda Kenny (Taoiseach, Department of An Taoiseach; Mayo, Fine Gael)
There were 45,177 permanent mortgage restructurings up to the end of September, which is an increase of 3,500 on the August figure. The Minister of State, Deputy Jan O’Sullivan, is working on a number of those smaller, more precise areas, including mortgage to rent and split mortgages. She is following through on that.
Séamus Healy (Tipperary South, Independent)
Will the Taoiseach intervene with the banks?
Enda Kenny (Taoiseach, Department of An Taoiseach; Mayo, Fine Gael)
There is a solution in each case for every person who has a mortgage difficulty, and the figures are well known. However, they must engage with the lenders.
Séamus Healy (Tipperary South, Independent)
They cannot do so because the lenders are not engaging with them.
Enda Kenny (Taoiseach, Department of An Taoiseach; Mayo, Fine Gael)
There is no point in leaving the matter aside because it will not sort itself out. A deal has to be cut in all these cases. That is why 70,000 mortgages have been restructured and over 45,000 have been permanently restructured. That did not happen of its own accord. It is because of the legislation, the targets, the code of practice and the assistance for people to engage directly with lenders.
Séamus Healy (Tipperary South, Independent)
It will not happen in these cases unless the Taoiseach intervenes.
Enda Kenny (Taoiseach, Department of An Taoiseach; Mayo, Fine Gael)
The housing supplement is being changed to give a different incentive so that people will have an opportunity to get back to work. The letter that Deputy Healy has is not a solution.
Séamus Healy (Tipperary South, Independent)
Absolutely. It is not a solution.
Enda Kenny (Taoiseach, Department of An Taoiseach; Mayo, Fine Gael)
Thousands of those letters went out from banks. Neither the Deputy nor I are responsible for the tone of that letter.
Séamus Healy (Tipperary South, Independent)
It is going out to those 40,000 people.
Enda Kenny (Taoiseach, Department of An Taoiseach; Mayo, Fine Gael)
This matter has been discussed with the Central Bank whose Governor has set down targets for every bank to sit down with every mortgage holder and work out a solution in each case. Evidence of the much decried personal insolvency legislation is now becoming clear from the initial cases going through, that the banks do not have a veto. If the banks decide not to deal through the personal insolvency agency, they may get nothing at all if the person follows a bankruptcy route. That has been changed from 12 years to three.
Statement by Seamus Healy TD 087-2802199
I wish to welcome the extension of the deadline for submissions to Eirgrid concerning its proposal to ditribute electricity via high voltage overhead lines strung between huge pylons.
In my recent Leaders Question to the Tánaiste, I requested such an extension. I also called for these lines to be placed underground.
However,I am seriously concerned by attempts by Eirgrid to confine the consultation to contention as to which corridoor should be used for these overhead lines. I referred to this in my Dáil question.
In it’s statement extending the deadline Eirgrid states :
“During this third round of public consultation, the project team has met with thousands of
stakeholders who have provided important feedback on the route corridor options which will
inform the technical team in the identification of a least constrained corridor in mid-2014. The
least constrained corridor is considered to be the corridor which best avoids social,
environmental, technical and other constraints.”
This is an attempt to present the general principle of overhead lines as a fait accompli. It would also facilitate efforts by government politicians to characterise objectors as being guilty of “NIMBYISM” (Not in my back yard)
I urge all those making submissions to contest the fundamental principle of high voltage overhead lines and monstrous pylons and to unite together on this basis.
Seamus Healy TD
Workers & Unemployed Action 