Noonan comments on debt relief welcomed

Comments by Finance Minister Michael Noonan that additional measures were required to tackle the growing problem of mortgage debt have been welcomed by legal rights group FLAC.

Minister Noonan had earlier indicated that recapitalised banks had enough money to enable them write off some mortgage debt, and the Government would take steps at a policy level to deal with the issue.

FLAC Director General Noeline Blackwell said the comments were "the first sign of any real urgency from this Government that it is willing to tackle the issue sooner rather than later."

"We need a coherent strategy that takes into account the entire personal debt crisis, not just mortgage arrears," Ms Blackwell said.

"People badly need and expect the government to come up with a policy response urgently. There is a lot riding on the next few weeks - the government must come up with a policy that is clearly thought out and workable."

However Fianna Fáil criticised the Government for what it called "conflicting statements" on the matter.

Finance Spokesperson Michael McGrath said that today's comments from Minister Noonan were in conflict with earlier statements from the Tánaiste Eamon Gilmore and Minister of State Brian Hayes – both of whom ruled out a debt forgiveness scheme.

"The total lack of coherence within the Government on the issue of how to handle mortgage arrears is resulting in mixed messages being given to the 55,763 mortgage holders currently in arrears of 90 days or more and also to the 93% of mortgage holders currently meeting their mortgage commitments in full," Deputy McGrath said.

"The Government needs to make a clear statement as to precisely where it stands on debt forgiveness and clear up the ever-growing confusion it has itself created"