Tom Hayes (Tipperary South, Fine Gael)

I pleased to speak on this important subject. A debate on any measure concerning our economy is important. If any good proposal emerges from this debate, it should be Deputy Connaughton's last point about interest rates. During the past six months interest rates have continued to fall and people have welcomed that. I cannot reiterate more strongly than Deputy Connaughton the difficulties faced by people tied into fixed rate mortgage interest rates. Thousands of young people signed fixed rate mortgages in the belief they were doing the right thing. They were delighted with their new houses, be it a second-hand house or whatever home they purchased. They are now locked into fixed rate mortgages in what are difficult times when people are trying to cut back on their expenses and have to make choices in that respect. If the Government wants to send out a signal that it cares or is interested in ordinary taxpayers, something must be done for those people who are paying very high interest rates. It is unjust and unfair. Different economic circumstances prevail now and I support fully what Deputies Connaughton and Clune said on this issue. It is one that should be addressed because the Government is taking over the banks and that is what the Government and many other people believe is the right approach for the economy. The first time I heard of the setting up of a toxic bank was when Deputy Bruton told our parliamentary party many months ago that this was the way forward. There is considerable consensus on setting up banks. We must also have regard for the houseowners who have to pay high interest rates and another tier of people, namely, those in business.

A constituent who is indebted to the banks came to see me the other day. He has a viable business, employs 16 or 18 people in a rural area and has three months' work on his books. He cannot get a schilling from the Bank of Ireland, AIB or any other bank. He has sought to get credit from every financial institution. I will advise the reason he cannot get credit and change is needed to address this issue. This man owed money to the Revenue Commissioners on foot of which they took a charge against him last year. He paid them every schilling he owed, including the interest that had accumulated.

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