Seán Fleming (Laois-Offaly, Fianna Fail) | Oireachtas source

The slide indicated in the last quarter the cost of funds was 1.03%, yet the standard variable mortgage rate is 4.5%. I know it has been said people can switch to fixed mortgages, but very few have switched. Why have we such a variation between the cost of funds at 1.03% and the standard variable rate of 4.5%? I know Bank of Ireland took a strong view on this at its meeting this morning, but I would say it is making it easier for the Minister for Finance to come down stronger on the banks by its resolute action. Ministers are under significant pressure to exert what influence they can through the Central Bank and Bank of Ireland is making that job easier. AIB was before the committee last week and it suggested there was a possibility of a reduction, but Bank of Ireland has taken a harder line. I suggest that is not helping the bank's case when it comes to time for negotiation with the Minister, but perhaps Mr. Boucher thinks that does not matter anyway.