Carol Nolan Slams Vulture Funds over Forced Farm Sales

The vast majority of us here in this state have been trying to live with Covid and to support the measures that have been put in place to save lives and indeed livelihoods. Unfortunately, however, the same cannot be said of everyone. We know that there are some financial organisations that are only too happy to prey on misery and distress, some of which has been generated by the Covid pandemic. This is particularly true of those vulture funds that have initiated a vicious cycle of ruthless activity involving the forced sale of hundreds if not thousands of farms across this state. Indeed, earlier this week, Declan O'Brien of the Farming Independent reported that there has been a renewed upsurge in forced farm sales by these very funds. This has involved an extremely aggressive approach being adopted by the lenders since the end of the Covid-19 related moratorium on forced sales. The same report also noted that personal insolvency practitioners and farm organisations such as the ICSA, ICMSA and the IFA have been sounding the alarm on this issue for years now and yet nothing has been done by government. The picture that is emerging from across this state is absolutely horrendous and indeed I have taken calls from some distressed constituents. It is of profound concern to many farmers who are trying their level best to engage with lenders around debt management and repayment. As I understand it, the personal insolvency practitioners have also sounded alarms on this issue. They have stated that some farm sales are even being forced through with any prior notice being given to the farmers themselves. Indeed, I am aware of one case where a farmer was informed by his neighbour that his farm was up for sale online. It is disgraceful and we need government action on this issue. As I understand it, a number of these forced sales have been denied through the application of protective certificates under the personal insolvency arrangement legislation. But this is not a new issue and we need much more action from government. We cannot allow this ruthless activity from vulture funds to continue. Back in 2018, farm organisations such as the IFA and ICMSA warned the Oireachtas Finance Committee that there was an urgent need to put in place a greater degree of enforcement by the financial regulator in terms of the protections offered to farmers. As the 2018 IFA submission noted, vulture funds take a short-term approach to the loans acquired and they are not generally interested in working out a long-term debt resolution with the customer. This generates real and lasting damage as the sale of assets damages the underlying viability of family farms. This is a particular problem for farms, where the value of security held is often far in excess of the debts. Yet here we are, three years later, with a hard Brexit overshadowing Irish agriculture. An unreformed fair deal scheme for farmers, still not finalised, and yet there is no movement on this issue. Tániste, where are the protections for farmers against vulture funds and what is this Government going to do to stop this ruthless, aggressive activity? Thanks very much, Deputy. I think at the outset it is important to say that people do have a responsibility to repay their debts. If you borrow money, you do have a responsibility to pay that. And that is true for mortgage holders, it's true for farmers, it's true for business people. And if you don't pay back your debts, you do actually cause social harm. Farmers not paying back their debts means it's harder for other farmers to get credit, and they have to pay a higher interest rate when they do. Business people not paying back their debts, that has an effect. It means it's harder for other business people to get credit, and they have to pay a higher interest rate when they do. And people not paying back their mortgage debts also make it harder for other people to get a mortgage in the first place, and mean that they have to pay a higher interest rate when they do. And we need to be frank about that and honest about that. People not paying back their debts causes social harm to others. It's not just a case of not paying money back to the banks or to a financial institution. Having said that, I strongly believe that anyone who makes an honest and reasonable effort to pay back their debts as best they can, whether that means over a prolonged period or whether it means restructuring the debt, well then they should be facilitated. Because nobody wants to see anyone losing their home or losing their business or losing their farm. And generally speaking, the courts are sympathetic in those circumstances. Certainly, you know, I don't see how a forced sale of a farm or a business could occur had there not already been repossession hearings in a court. Because that would have to happen first. And courts in Ireland don't grant repossession orders very likely. There will be a very low level of that. So I think it needs to be borne in mind that there are a lot of protections that exist already. And I'd very much encourage people to engage with insolvency practitioners, with banks and financial institutions to try and find a solution to their debts where that occurs. I'm shocked at your lack of understanding on this issue. These vulture funds are absolutely ruthless. I personally know farmers who are doing their level best to engage with financial institutions. But these vulture funds are faceless entities. And I'm shocked this government is happy to let them run riot and cause misery and distress to people. I am not saying for one second that we don't get people to pay their debts. I'm not saying that. But there are people who are genuinely trying their best. And they are not being afforded the space or indeed the fairness. And Tanish, the solutions were put forward on this matter. I know my colleague Deputy Matty McGrath was involved in bringing legislation forward a number of years ago on vulture funds. And I also know that the IFA, you know, they have said that, you know, the first thing that's needed is a regulation of the vulture funds. So you're saying that the regulation isn't needed. I don't think you understand the gravity of this situation in rural Ireland. As the IFA has observed, it is simply unacceptable that farmers who give security to long-standing institutions and pillar banks can now have that security sold to faceless entities who may not be answerable to anybody. So what I'm asking you to do, Tanish, is to ask the Minister for Finance if he will roll out meaningful protections for farmers. Because there are no real protections. And you and your government cannot stand over this ruthless land grab. Because that's what it is. It's a land grab. Thank you Deputy. Thank you. Thanks Deputy. There are regulations in place and there are protections in place. And perhaps it is the case that those regulations aren't strict enough. Or those protections aren't strong enough. And of course we're always open to hearing proposals that might strengthen protections for borrowers. Or might strengthen the regulation of financial institutions. That's something we've done in the past. And something we remain open-minded about into the future. But I do think we do need to bear in mind that, you know, all of these circumstances are different. All of these cases are individually different. And often the story that we hear isn't always the full story when you look into it. And people do have a responsibility, if they have borrowed money, to pay that back. And find a mechanism by which they can pay it back. And ultimately, people not repaying their debts does cause a wider social harm to others. And I think we need to be honest about that. Right here. Right here you! Eight? Eight? Eight? Eight? Eight? Eight? Eight? Eight Last? Eight... We're now Pittsburgh.