Sinn Féin Finance Spokesperson Pearse Doherty has said that yet another increase in the number of mortgages in arrears shows that the government's policy is failing.

Deputy Doherty said: "This latest increase must act as a wake- up call to Fine Gael and Labour.

"Some 94,488 or 11.9% of principal dwelling houses (PDH) were in arrears of over 90 days at end-December, up from 91,358 accounts (11.5 per cent) at end-September 2012 according to the Central Bank. The number in March 2011 was 49,609. This continuing increase after two years of Fine Gael and Labour government shows that their policy is failing.

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"The figures show that there are now 185,882 households in mortgage distress. That is 23.5% of all domestic mortgages.

"That is a shocking figure but we know this government will not exempt those in arrears from a new Family Home Tax. This can only tip those already in arrears further into distress and push those struggling to pay into arrears.

"Two years of Fine Gael and Labour government has seen the number in arrears of over 90 days nearly double. The Personal Insolvency Act will do nothing to force lenders to face reality because it leaves them with the final say.

"The government has caused much stress for many in arrears too by stating its commitment to reverse the Dunne judgment. Any such legislation must prioritise the protection of the family home.

"Sinn Féin is arguing for a new approach from government including the appointment of an independent body with the power to compel banks to come to fair deals with those struggling including where appropriate write-downs."

(CD/GK)