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

That is the kind of thing we need to tease out here. I have said there are concerns about the Bill and we need to tease them out. I do not want to make any pre-emptive statement here, however, which might be taken as an indication that I would not co-operate. I will co-operate if we can. If this is enacted, it will not give any executive function to the Department of Finance. The executive function is being given to the Central Bank which is independent in its statutory basis and in the way it operates. I cannot direct the Central Bank, but the Oireachtas can regulate. The Deputy is right that very early on the committee has to get the Central Bank people in and ask them about it. The Central Bank made it clear publicly at the time Second Stage was being taken that it had not requested this power. It also seemed to hint, if it did not say so bluntly, that it if it got the power, it might not use it. There is no point in giving the Central Bank a power that it is not going to use. It is not my place to advise the committee, but in my view that is a key question. Will the Central Bank use the power if it gets it? Next, consideration must be given to whether the Central Bank perceives an adverse effect of the legislation despite its advantages. Could it assess the effect it might have on new entrants entering the mortgage market? There is a range of genuine issues.

I agree with the committee that variable mortgage rates for existing mortgage holders of historic mortgages are too high for certain banks. Other banks have moved and are providing very competitive rates. The market for new entrants is pretty competitive now. One can argue about small percentages, but there is no huge discrepancy there. However, there is the discrepancy Deputy Michael McGrath pointed out, in particular in relation to banks like Danske, which has quit the market and is trying to collect as much as it can from its historic loan book, and Bank of Ireland which, no matter what way we talk to it, will not move on the very high rate it has for older mortgages. It has moved significantly, however, on new mortgages. It is not for me to call it but I will use the resources of the Department to help the committee and will comply with any request. If finance spokespersons need briefing in the Department outside the ambit of the committee, we can arrange that.