Bill to help struggling mortgage holders fails

Proposals for legislation protecting mortgage holders in danger of losing their homes has been shot down.

Independent TD Stephen Donnelly presented a Private Members’ Bill in the Dáil, suggesting judges should be allowed to use their own discretion in repossession cases.

But Justice Minister Alan Shatter dismissed the bill as unworkable and flawed.

“This bill could make matters worse rather than better,” said Mr Shatter.

“It is important that we find the correct balance between the homeowners and the institutions, and the deputy’s bill does not do that.”

Deputies from all parties praised aspects of the bill, but the Wicklow and East Carlow TD conceded that there were technical issues and he would therefore withdraw the bill to prevent it from going to a Dáil vote and potentially dividing the house.

But Mr Shatter said that even with the bill’s problems, it would be too costly and time-consuming for the courts.

Enacting it would “require the courts to consider unnecessary and unworkable, and constitutionally flawed factors”.

Mr Donnelly hopes his proposals are taken into consideration when the Government’s Personal Insolvency Bill goes before the Joint Oireachtas Committee in March.

“There are several technical factors that do need to be addressed in myproposal,” he said.

“But it seems the nub of it could be included in the Personal Insolvency Bill.”