Coalition once again sides with the banks

It would appear the banks and politicians have finally faced up to the fact that the mortgage crisis must be addressed.

Those who were unable to pay or were having severe difficulties in paying their mortgage have realised for the last several years that a major problem existed. However, what the banks are looking for and what the mortgagees want to see come from the resolution process are very different.

Mortgagees want recognition of their dramatically changed circumstances, an understanding of the difficulty they have in repaying the loan and to find a solution that allows them to get on with their lives while repaying what they can.

On the other hand, the banks simply want their ‘pound of flesh’ and then some. Our Government, to its eternal shame, has supported the banks in this every step of the way.

Undoubtedly, there are those who are declining to pay their mortgage in the hope that the Government, other taxpayers, even circumstances will force the banks to accept the need for widespread write-offs. It is not going to happen — not even if hell freezes over. The banks as we have seen over the last few years are relentless profit-taking machines. They do not appear to care where it comes from, how they get it or even who is hurt in the process.

Sure the banks, or at least individual bank employees, may have strongly urged folk to take loans to buy investment properties, but those who took them were not forced to do so. But for the banks to suggest 20% of all people currently behind on their mortgage repayments are “strategic defaulters” is a claim too far.

The vast bulk of people borrowed money, sometimes many multiples of their joint salaries, to put a roof over their heads. They were persuaded that tomorrow might be too late.

Most of those who purchased over-priced homes in Priory Hall, did so on the basis that the properties met all of the supposedly obligatory national standards.

After all, didn’t one arm of government zone the land and give planning permission for the construction of the properties; didn’t the lending agencies do an inspection before releasing the loan; and weren’t consulting engineers and local authority inspectors responsible for ensuring the properties were built according to code? Indeed hadn’t their own solicitors undertaken the conveyancing and weren’t they experts in such matters? In most other civilised developed countries they would be right. There would be a system that works.

In Ireland we appear to have holes in our systems of governance into which a double decker bus could vanish without trace. When it became clear that the Priory Hall development failed the safety standards test the unfortunate people who had purchased these properties found that they had nowhere to turn. Unfortunately, in this little island of ours no one is responsible. In the case of Priory Hall the State is at fault but it appears no one is liable other than the victims.

The people living in the development were forced to leave on safety grounds. Under duress the local authority concerned had to pay for alternative accommodation. It seemed a reasonable short-term compromise until the issue was resolved.

After all, are these folk not also repaying the mortgage even if they cannot enjoy the property concerned?

The developer has declared bankruptcy and cannot be touched. The local authority is going to court to stop paying for the residents’ accommodation. The Taoiseach and his Environment Minister are refusing to meet the residents on shaky sub judice grounds.

So it’s billions for the banks and nothing for those failed by ineffective government. It would appear that today’s Ireland fails its own citizens again and again. Is it any wonder tens of thousands are moving elsewhere possibly never to return?