Pearse Doherty (Donegal, Sinn Fein) | Oireachtas source

-----for the benefit of anybody who is watching the proceedings. I welcome Mr. Whelan and Ms Corcoran from the Social Finance Foundation and Dr. McCarthy and Dr. Byrne. As the sponsor of this legislation, I thank my colleagues in the committee. They have prioritised this legislative measure despite the many pressing matters we must deal with and the restricted amount of time the committee has. Obviously, that follows up on the unanimous support the measure received on Second Stage in the Dáil. It is also my intention to make a submission as part of the pre-legislative scrutiny, if that is permitted, because it is something that probably chimes with our witnesses. I believe we need to consider a more nuanced approach in terms of a tiered stepping down of the interest rate. There are other issues I wish to address as well on foot of the engagement I have had with different sectors since I introduced the Bill in 2018.

With regard to the moral question of high interest rates, we know that what is permitted at this point in time is 187%. Indeed, that could increase if the Central Bank wishes because there is no restriction on it in terms of the allowing of additional costs. However, when the collection charges are included, it can increase to 288% for moneylenders that are currently operating in the Irish market. In its opening statement, Social Finance Foundation says that it is a moral issue, first and foremost, and the question posed was how we would respond if the Government produced legislation that allowed a bank to charge these rates. It is obvious that we would not accept legislation of that nature and, therefore, we should not accept the current practice. Will the witnesses illustrate the financial implications of these high rates for borrowers and families? Is it the case that these are predominantly families who have low incomes and that the borrowers are predominantly female?