Link to full Report on this article: Keane Report on Mortgage Arrears published.
http://www.politics.ie/forum/economy/172769-keane-report-mortgage-arrears-published.html
The Keane (Department of Finance) Group comprised civil servants and bankers without any consumer representation.
Alternative to Keane Report which represents consumers (and includes the views of ECRC partners) is available here: http://www.flac.ie/download/pdf/20111020090157.pdf
Personal and Mortgage Debt: Nine key principles to overcome the personal debt crisis (Irish consumer stakeholders, 2011)
A summary of principles to address the debt crisis
1. Over-indebtedness – It is inability to pay rather than a lack of willingness to do so that is at the heart of the personal debt crisis. Over-indebtedness is a deep social and economic problem that requires a multi-dimensional strategic response from government.
2. The need for data - Comprehensive information is urgently needed to quantify the extent of the debt problem. Policy initiatives undertaken must be constantly evaluated in light of such data.
3. Multiple debt - Proposed solutions must take all debt liabilities into account to be effective and workable.
4. Personal insolvency legislation -There is an immediate need for the introduction of personal insolvency legislation. A Debt Resolution Agency should be established to oversee the legislative scheme to ensure transparency and consistency.
5. Debt write-off - Insolvent debtors should pay to the best of their ability for a limited time period and remaining debt should then be written off.
6. Access to representation - Debtors must be entitled to have an advocate represent their interests in negotiations to agree or processes to contest debt repayments.
7. Minimum income - Debtors must be entitled to a minimum income to meet their basic needs while repaying debts.
8. Unsustainable mortgages - The fact that some mortgages are unsustainable must be recognised and where repossession results, appropriate social housing and social welfare rights must be provided to such households.
9. Retention of dwelling - State supports should aim to keep people in their homes where possible, whether in an ongoing mortgage or as a tenant where appropriate.
The rationale behind these basic principles is set out in the document attached in more detail. |
