Pearse Doherty (Donegal South West, Sinn Fein) | Oireachtas source

I want to focus on the preferential loans from companies to employees which the Minister said will affect the market rates. In the first case we are replacing 4% with 5%, therefore the preferential loans from companies to employees are set at 5%. This Finance Bill will reduce the rate to 4% to reflect the norm in the markets. However, the markets are completely different and are going in the opposite direction. Interest rates on loans in the markets are not decreasing, they are actually increasing. We have had the discussion previously about AIB increasing its market rates. It has increased them twice in the past six months. We are aware from the Joint Committee on Finance and Public Expenditure and Reform that the chief executive officers of the bank have said the rates would increase over a period. The trend is upwards, yet the Finance Bill in the first section here is taking the specified rate for preferential loans to employees going in the opposite direction. I do not understand the rationale as to why that is happening.