EDITORIAL

BANK bailouts and Nama have copperfastened the view that Ireland is still very much a country of the haves and the have-nots.
While every effort was being made to keep the big financial institutions afloat in the interest of the economy, there was a steadily growing anger among the public at the appalling behaviour of people in key positions in these institutions. The ordinary citizen was not being accorded equal treatment and so many were experiencing financial hardship, even to the point of fearing they would become homeless.
The Government has, at last, moved to help alleviate the plight of thousands of mortgage holders who are either failing or struggling to meet repayments as a result of the impact of the recession.
In line with the recommendations of the Mortgage Arrears and Personal Debt Expert Group, a new programme allowing homeowners with mortgage arrears to agree new repayment terms with banks and building societies is to be established.
Launching the expert group’s report this week, Taoiseach Brian Cowen said most of the recommendations can be implemented in the short term and the Financial Regulator has agreed, where possible, to implement them without delay. He said all banks and building societies would be obliged to have a mortgage arrears resolution process that would ensure consistent treatment of borrowers in difficulty.
The report has recommended that the Government overhaul the State’s existing mortgage interest support scheme, designed to help homeowners in financial trouble. The banks will not be allowed to charge those who take part in the resolution process extra interest or penalties, nor will they be allowed to change the terms of low-interest tracker mortgages to increase repayments.
The status quo is to remain in respect of the agreement reached last year whereby financial institutions cannot pursue legal action against people in arrears for a period of 12 months. It was felt that to extend the time could discourage some borrowers from facing up to their responsibilities.
There is a very carefully framed five-step resolution process to help banks and borrowers come to mutual agreement as to how the debt can be cleared.
The starting point is when the borrower or the bank contacts the other party about a problem mortgage. Once the process is initiated, the borrower must provide all relevant financial information to the bank. This is then assessed and a resolution, which could involve cutting the repayment amounts or switching to an interest-only mortgage, is agreed as the next step. Finally, borrowers who do not agree with the resolution can appeal to the Financial Services Ombudsman.
The Money Advice and Budgeting Service (Mabs) is to act as the first point of contact for consumers looking for information about dealing with mortgage problems.
While there have been a few politically-motivated sceptical observations, the initiative has generally been well received. Mortgage holders at their wits’ end trying to keep bread on the table and a roof over their heads, have at least been given some space to try to get their lives back on track.

Fine Gael’s healing process

CLARE Fine Gael TDs Pat Breen and Joe Carey nailed their colours to the mast in the recent failed attempt to remove Enda Kenny as party leader.
Pat Breen, the party’s deputy spokesman on foreign affairs, rowed in behind the challenger, Richard Bruton while first term TD, Joe Carey, declared in favour of the incumbent. 
Deputy Breen said to oppose Enda Kenny was one of the most difficult political decisions of his life taken, following consultation with local Fine Gael councillors and members, in the best interest of the party and country.
Joe Carey made his stand based on his belief in the strength of Enda Kenny and the fact that the Fine Gael leader had added his name to the party ticket in the 2007 General Election. He passed no apologies for repaying Enda Kenny’s faith in him.
Clare county councillors were also divided on the issue with the majority expressing a preference for Richard Bruton.
Now the dust has pretty much settled on the title fight, with Enda Kenny basking in the glory of a comprehensive win, knowing well that the next challenge to his leadership is very much dependent on the outcome of the next general election.
Following on from the leadership vote, last Thursday Enda Kenny announced his new front bench. There were some hopes rather than expectations that Joe Carey might be repaid for his support with a front bench portfolio, as part of the reshuffle. However, Enda Kenny’s decision not to isolate all of his high profile opponents meant there was little room for manoeuvre to give newcomers a break. He adopted a pragmatic approach in not sending the dissidents to Coventry. Healing the wounds and presenting a united party took precedent over the option of a total clear-out of the Bruton supporters. Even Richard Bruton retained a front bench position, albeit with a different portfolio. Another sign of Enda Kenny’s determination to get on with the business of bolstering the party’s standing was bringing former leader Michael Noonan in from the cold to become finance spokesman.
Joe Carey did get some reward in being appointed deputy chief whip in addition to retaining his brief as spokesperson on juvenile justice. Perhaps there may be a greater payback post election.
Despite being aligned to Richard Bruton, Pat Breen remains the party’s deputy spokesman on foreign affairs. Again this points to Enda Kenny’s realisation that the party must play to its strengths and Clare, with two out of four TDs, is very much a marginal constituency. Disquiet and disunity among Clare Fine Gael supporters in Clare is the last thing he needs.