Peter Mathews (Dublin South, Fine Gael)
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Question 121: To ask the Minister for Finance if his attention has been drawn to the fact that, despite passing on the recent ECB interest rate reductions, Permanent TSB charges the highest standard variable rate mortgage; if his further attention has been drawn to the fact that Permanent TSB increased its standard variable rate four times between July 2009 and February 2011 even though the ECB did not adjust interest rates in this period; if his attention has been further drawn to the fact that this high interest rate is forcing some customers to restructure their mortgages and forcing other customers into arrears on their mortgages; his plans to ensure that banks cannot charge excessive rates on standard variable mortgages; and if he will make a statement on the matter. [1428/12]

Michael Noonan (Limerick City, Fine Gael)
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I am aware of the interest rates charged by Permanent TSB. However the lending institutions in Ireland, including those in which the State has a significant shareholding, are independent commercial entities. Ultimately the pricing of financial products, including standard variable mortgage interest rates, is a commercial decision for the management team and board of each lending institution, having due regard to their customers and the impact on profitability, particularly where the cost of funding to each lending institution, including deposit pricing, is under pressure.

I have no responsibility for any increases/decreases in the variable mortgage rates charged by Permanent TSB.

The Deputy will be aware of the report of the Inter-Departmental Group on Mortgage Arrears which was published last October. The report sets out a number of recommendations to address the situation of those in mortgage arrears. The report stated that the issue of mortgage difficulty can only be addressed in an efficient way on a case by case basis. Arising from the report, a number of developments are underway that will be of assistance to mortgage holders experiencing significant difficulty.