Speaking on the Order of Business, Seanad Government Chief Whip and Fine Gael Senator, Paul Coghlan, said the mortgage arrears plan set out by the Government will put pressure on the banks to deal with those in mortgage arrears and bring peace of mind to homeowners in distress.

Mr Coghlan said: "The Government has been all too aware of the situation facing the tens of thousands of people who have fallen into arrears as a result of the collapse of our economy and has put measures in place to deal with the issue. By setting targets for the banks which they will have to meet by certain deadlines, this issue can no longer be kicked down the road and lenders will be forced to act.

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"The main focus of the plan is to enable people to deal adequately with their debts so that they can play their part in our economic recovery; something that they are hindered from doing if strangled by debt. By the end of June this year at least 20% of struggling homeowners should have been offered sustainable mortgage solutions to deal with arrears. By the end of September 2013, this will have reached 30% and by the end of the year, the banks should have proposed sustainable mortgage solutions for half of all distressed borrowers.

"By ensuring that the progress being made is closely monitored and that the Central Bank has the powers to impose penalties which will encourage engagement by the banks, speedy resolution of this issue should be forthcoming. The Minister for Finance has also stated in no uncertain terms that if the banks do not play ball, the Government will act to achieve the stated aims.

"The scaremongering being engaged in by Fianna Fáil is sickening in the extreme. This resolution process will not result in a flood of repossessions, it will offer a light at the end of the tunnel for those in genuine mortgage distress and offer them a way out of their unsustainable debt situation."

(CD)