Fianna Fáil has slammed the government over its measures to deal with the mortgage arrears crisis.

Finance Spokesperson Michael McGrath said the government has continued to deny the problem over how banks are permitted to dictate the nature of how mortgages are restructured.

Deputy McGrath said: "We welcome the fact that a court may, in certain circumstances, effectively overrule the bank and impose a solution but we need to see the details of how this will work. It comes of course in the wake of the government consistently stating that such a plan would be unconstitutional.

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"We know from how the banks used the personal insolvency legislation that they will exploit any weakness in the legal framework governing how they deal with mortgage distress. Borrowers going to court need to have independent and timely legal advice. This needs to be a fundamental part of the solution. We also need to legislate to ensure consistency in treatment across banks in relation to split mortgages and other solutions.

"It is my view that there is a need for a complete culture change on the part of the banks in how they deal with customers and an independent mortgage resolution process to ensure that fair treatment is given to families. I am very doubtful if what is being proposed today will be adequate to achieve this very necessary culture change."

(CD/JP)