Robert Troy (Longford-Westmeath, Fianna Fail)

I thank my colleague, Deputy Michael McGrath, for tabling this very important motion given the huge number of people affected. The motion essentially deals with three issues: the totally uncompetitive standard variable rate, SVR, currently being charged by Permanent TSB, a bank in which the majority stakeholder is the Government; the continuing difficulties small and medium-sized businesses are experiencing when they apply for credit; and the difficulties so many people face with regard to mortgage arrears.

I am sure that, like me, many Deputies received numerous telephone calls and e-mails today from PTSB customers all over Ireland pleading with us to do something about the unjustifiably high interest rates being charged - as if we did not know about them already. Although I accept the Government has no statutory function in this regard and cannot legally force the PTSB to reduce its STV, nonetheless, as a major stakeholder, it has the moral authority to intervene just as it did with AIB in November last year, an action on which I compliment the Minister for Finance, Deputy Noonan.

This issue is not about political point scoring but about creating awareness and highlighting the need for PTSB to acknowledge that the taxpayers of Ireland have supported this bank. It now has a moral obligation to support the more than 80,000 customers who find themselves trapped in totally uncompetitive mortgages. These customers do not even have the option to switch to an alternative, given the lack of real competition in the market.

We do not advocate that PTSB should offer rates on which it would lose money; that would not be in the taxpayers' interest. However, the fact remains that although the ECB has reduced interest rates by 3% since June 2007, the PTSB has reduced its SVR by only 0.25% in the same time period. PTSB's margin over the ECB rate has gone from 1.44% in June 2007 to 4.19% today. PTSB, a State-owned bank, is charging its customers 5.19%, or 2.19% more than AIB, another State-owned bank. On a €300,000 loan over 30 years a Permanent TSB customer will pay €1,666 a month compared to €1,264 for an AIB customer, a difference of €402 per month. One can imagine the difference this extra money would make to the quality of the lives of the people affected.

According to a recent Central Bank report, it appears some lenders are charging higher variable rates to compensate for the losses they are making on their tracker loans. In their contributions some Government Deputies seemed to think this was justifiable. It is not. The risk with such a strategy is that it may be counterproductive and may continue to exert upward pressure on arrears. In other words, PTSB is not only placing an enormous financial burden on families, which is the main issue, but its action is proving counterproductive for the company. Now that there are Ministers of State in the Chamber to hear the debate, I urge them to use their influence to ensure there is a reduction in the variable interest rate, thereby giving a lifeline to many struggling families.

I refer to the issue of SME access to credit. If the Government cannot see this is a major issue, it is even more remote from what is happening on the ground than I originally thought. I continually meet people from small businesses who say that this issue, along with that of commercial rates, is having a serious negative issue on their business. In the past year the Government ignored the SMEs, a sector that involves more 655,000 people. First, it reneged on its commitment to abolish upward only rent reviews. It also failed to review how commercial rates are charged.

In regard to credit, on 1 March Professor Patrick Honohan stated that Ireland is the most difficult country in the eurozone when it comes to small businesses accessing credit. Some 92% of SMEs claim the Government is either making no difference or is having a negative impact on SME lending. The chief executive of ISME, Mark Fielding, stated: "We must put an end to the fiction that bailed out Irish banks are functioning properly. Access to credit is abysmal, the application process is getting longer and businesses are not being told their rights." While the Government dithers and waffles, vulnerable small business owners are being terrorised by bankers, leading to a massive build-up of anger and frustration within the business community. These are not my words - they come from representatives of the business community.

The Government has made multiple announcements with regard to the loan guarantee scheme and the micro finance scheme but we still await the necessary legislation. That is nobody's fault but the Government's. Can we have less spin and more substance?

I would like to continue on the subject of mortgage arrears but do not wish to eat into the time of my colleagues. I am sharing time with Deputies John McGuinness, Willie O'Dea and Timmy Dooley.

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