Temporary debt solutions not enough

THE Government needs to realistically respond to the biggest economic and social issue facing the country — the consumer debt crisis.

Banks are dragging their heels on dealing with it, the Central Bank hasn’t the powers to get them to behave themselves, and the mortgage modification programme is no more than an “extend and pretend” mechanism to protect bank capital.

The Central Bank’s threat to look for powers to cap interest rates on variable rate mortgages was reported on as a consumer protection initiative. It could equally be considered a bank capital protection measure.