MEASURES THAT would allow the courts consider alternative remedies to help debt-laden families protect their homes from being repossessed have been proposed by Fianna Fáil.
A party policy document, published yesterday, contains two full pieces of legislation: a family home Bill and a Bill to regulate debt management advisers, whose numbers have increased greatly in recent years but remain completely unregulated.
The proposed legislation would allow courts to extend the term of a mortgage; to impose payment holidays; and an interest-only option for up to four years. The policy also calls for tough new measures to regulate the growing number of debt management advisers. The party contended yesterday that the difficulties of some home owners have been compounded through engagement with these unregulated companies.
The policy paper contended that one in 10 mortgages in Ireland is in arrears for over 90 days and the statistics consistently showed that the number of repossessions continues to increase, reaching a record 140 houses for the first quarter of 2011.
The policy also supports a reform of the mortgage interest supplement schemes to make more homeowners eligible. The fourth measure is the adoption of Law Reform Commission proposals from October last year on dealing with personal debt management and debt enforcement.
The report was launched by party leader Micheál Martin in Leinster House yesterday.
During the news conference, Mr Martin defended his party from suggestions of cynicism on its part, given that then Fianna Fáil minister for justice Dermot Ahern rejected the findings of the Law Reform Commission on debt management last year and had not implemented the reforms it now proposed when in government.
Mr Martin said individuals involved in the last government, such as Éamon Ó Cuív and Senator Marc MacSharry, had produced documents and proposals which had not reached completion because of the early election.
In relation to Mr Ahern’s rejection of the report, he replied that Fianna Fáil had a new finance team in place and he had given the team a free remit in relation to policy formulation.
Mr Martin said that since he became leader, Fianna Fáil had produced a number of “radical” policy proposals, all of which had been rejected by Government.
“It will not discourage us from being a party of constructive opposition. The finance team has a radical and comprehensive plan to address the fears of people who may lose the family home,” Mr Martin said.
The policy details were outlined by public expenditure spokesman Michael McGrath, Mr MacSharry and Senator Thomas Byrne.
Mr McGrath said the number of repossessions and incidents of arrears were increasing and the “true picture” was worse than official statistics suggested.
The party’s Family Home Bill 2011 has provided for a range of alternative options to repossession of which the court may avail. They include an interest-only option for four years; an extension of mortgage term by up to 20 years; a payment holiday of a year; an adjustment to the interest rate; a debt-for-equity option or a deferred interest scheme.
