english

Imaginative solutions called for to help stave off potential housing crisis

Cllr. Jack Walsh, Cathaoirleach, Employment & Social Inclusion sub-committee

MABs met with the Employment & Social Inclusion Sub-committee of the Southern & Eastern Regional Assembly in Assembly House, Waterford on Friday 25th March. Mr. John Lawless, National Development Officer, MABS National Development Ltd spoke about the growing increase in demand for their services.  “The number of mortgaged clients is growing as a percentage of the total caseload and to almost 40% of the client base where accommodation status is known” Mr. Lawless told the meeting. The average amount owed by new clients presenting at MABS Services has grown from just over €6,990 in 2006, to €19,471 in 2010. Seventy percent of all debts owed by MABS clients were owed to banks or financial institutions.
In raising a question as to how MABs measure their success in negotiating on behalf of clients in trouble with their home mortgages, Cllr. Christy Burke advised of the impending crisis that looms if the economy doesn’t recover. The meeting called for imaginative solutions to pre-empt a doomsday scenario of home re-possessions where people are unable to service mortgages. “This will only serve to add to the pressure on an already overburdened local authority social housing provision”. Rather than waiting for the worst to emerge a proactive stance is required, central government should work with local authorities and agencies like MABS and identify schemes such as shared home ownership rather than allowing the remedy of re-possession to be preeminent. Ultimately the cost will fall on the exchequer and local authorities to re-house those who might be unfortunate to lose their homes. MABs see housing, food and energy as basic human rights, the time to set alternatives in place is now and not to wait for the worst to emerge. Mr. Lawless explained the Law Reform Commission (LRC) of Ireland has just published its final report on personal debt in Ireland. He also advised that the Expert Group on Mortgage Arrears and Personal Debt Expert Group, published its final report with recommendations on measures to assist in dealing with the difficulties created by mortgage arrears. The committee agreed to examine these reports in more detail but urged the need for proactive planning and that the recommendations emerging from these reports are carefully monitored to ensure they are implemented.
Mr. Lawless detailed a number of other areas where people are experiencing difficulties such as meeting credit card payments, utilities and waste charges. Cllr. Denis O’Flynn, Cork City Council, Cllr. Christy Burke, Dublin City Council and Cllr. Senan Griffin Kildare Co. Co. each raised the issue of the cost to councils of the waiver schemes on refuse collection charges.  They are concerned that if councils are not able to continue to support waiver schemes to the same extent the effect will be to add to the financial woes of those already finding it difficult to keep their heads above water financially.
MABS is negotiating arrangements with creditors for a higher proportion of its client base. For those experiencing debt for the first time or small businesses that need more specialised assistance Mr. Lawless described a scheme offered by Chartered Accountants Voluntary Advice (CAVA) this is a new service launched by Leinster Society. The Chartered Accountants Voluntary Advice is a limited company set up by the Leinster Society which facilitates the provision of financial advice, voluntarily, by members of the Society to people referred by MABS, the Money Advice and Budgeting Service. While MABS helps people with regard to their domestic affairs, it is envisaged that CAVA volunteers will provide advice and assistance to individuals on business and financial affairs.

Cllr. Jack Walsh, Waterford City, Cathaoirleach of the subcommittee commended MABS on the stalwart work they do and called on the subcommittee to seek the assurance of the Department of Social Protection that the resources allocated to MABS would be safeguarded and enhanced, because of the critical nature of the services they provide.

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For further detail on this press release please contact:

Derville Brennan                    
Programme Executive
S&E Regional Assembly
Assembly House
Waterford
00 353 (0) 51 860700
00 353 (0) 87 7793755
dbrennan@seregassembly.ie
www.seregassembly.ie