Michael Noonan (Limerick City, Fine Gael) | Oireachtas source

The note I have states this is a routine amendment. The rates are checked on an annual basis and adjusted if they are out of line with the Central Bank figures. They are checked on the run-in to the budget. Based on the data available from the Central Bank, at the time home loan rates were in the range of 3.12% to 4.04%. Accordingly the specified rate was reduced in the budget from 5% to 4% in line with that advice. I might add that based on a similar review the decision has been taken to increase the non-mortgage loan rate. This rate has been increased from 12.5% to 13.5% as the Deputy suggested in his contribution. This reflects commercial rates at the time of the budget provision of 13.5%. We follow the advice of the Central Bank as to what the rates are. There was a reduction on the personal mortgage rates for the purposes of benefit in kind but loans to companies to directors, for example, along the lines the Deputy suggested, that commercial lending had gone up in interest rate terms, and the adjustment was 12.5% to 13.5%. These rates are not fixed and will be reviewed again in the lead-in to the 2014 budget. An annual review takes place of the rates in advance of the budget and finance Bill.