Over €60m to be spent on mortgage plan

MORE THAN €60 million would be spent this year on the mortgage interest supplement, Minister for Social and Family Affairs Mary Hanafin told the Dáil.

She also said that the report of the review of the administration of the mortgage interest scheme would be published in April.

Its main purpose, she added, was to examine how the scheme could meet its objective of catering for those who required assistance on a short-term basis because they were unable to meet mortgage interest repayments on their sole place of residence.

“The group is examining trends in programme and administrative costs, the impact of the financial regulator’s statutory code of practice on mortgage arrears on the mortgage interest supplement scheme and legislative and operational issues including the cap on hours of employment,’’ she added.

“The review is also considering whether alternative approaches to achieving the scheme’s objectives are warranted in light of recent changes in the economic climate and the mortgage market.’’

Ms Hanafin said after consultation with the community welfare service, guidelines on specific and immediate operational issues for community welfare officers operating the scheme were finalised.

Fine Gael spokeswoman Olwyn Enright said not only were they waiting for reports from the review groups, but they were also awaiting the Taoiseach setting up the high-level independent group.

In the meantime, said Ms Enright, the Government should consider easing the mortgage interest supplement criteria so those who might benefit from the reviews, if anything was done on foot of them, did not lose their homes. “People are being refused mortgage interest supplement at the moment,’’ said Ms Enright.

“They are losing their homes because they cannot negotiate anything with their banks.’’

Ms Hanafin said it should not be ignored that a moratorium of 12 months had been established relating to all institutions covered by the financial regulator, including the subprime lenders.

Ms Enright said the Minister should go to the courts to see what was happening in the area of mortgage arrears. Labour spokeswoman Róisín Shortall said the Minister should set down guidelines for assistance payments.