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

The information I have is that the December 2012 figures from the Central Bank indicate that mortgage loan rates are in the range of 3.43% to 4.34% and non-mortgage loan rates are 13.57% so that the new specified rates of 4% and 13.5% are appropriate. Since the review is on a 12 month basis, what we do captures trends over a 12 month period. There were reductions on interest rates earlier on and they are well captured in this but they will be reviewed again in the run-in to the next budget. If the Deputy's prediction on interest rates is correct and they continue to rise, that will be reflected in the rate we consider to be appropriate for benefit-in-kind on preferential loans. I have got another note stating that the next review will take place in preparation for the budget. Rather than it being up against budget night, it will be reviewed in October in building up the budgetary arithmetic; therefore we are only six or seven months away from the review. I understand what the Deputy is saying. At a particular point in time he is correct but we do not keep changing them at particular points in time, we change them on an annual basis. If the Deputy's prediction on interest rates is correct, that will be reflected in the figures we bring in here next year. If, on the other hand, interest rates remain static or decrease, for some unforeseen reason, we will have a different set of figures.