Mr. Padraic Kissane:

With regard to the first part about the belief of how vulture funds were going to act, I have a grave concern as to the reasons the interest rates are increasing. It will only increase the arrears problem. My concern is if the laws regarding the payment and arrears of loans are not being applied, what will happen when the loan defaults and it is with a vulture? There are concerns. In other words, I will just pose a question. Is it a broader target or intention of what is happening with it? Can any one of these firms increasing interest rates expect that something over 7% can continue to be paid without an arising issue of an increase in their arrears problem? Pepper, at the moment, will have to double its staff again because the level of arrears will only go up, and that is from performing loans with the banks. I posed the following question in my submission. What happens when the non-performing loan, NPL, figures start to rise again with the main lenders? Do we go through the same rigamarole again?

On the second part regarding the vultures and drawing the full circle of intentions of what is being done here, that is where I would be challenging. However, looking at Lone Star, it is making a substantial return for its shareholders and that is all that matters. The Deputy is absolutely right. The intentions of the code of consumer protection are not being adhered to. There is a “spirit” in the code. That is how it is worded. I think it is something that should change if they rewrite it again because a spirit and trying to transpose it into factual behaviour will always be fluffy. There is more target. I refer, for example, to the three people who are here today. If that is the start of a reaction, the vulture funds can stop this and correct this. I do not see what the reluctance is to offering fixed rates from these vultures. Are they funding from the same sources as the mainstream banks, as they keep telling me, or are they funding just to get a better return? I think many of these funds purchased were already established investments for their shareholders. Look at Lone Star’s website and see the return on investments from its pension or investment funds.