Mr. Niall Cody:

It depends on what the purpose of the interest rate is. We are not a bank. If we had an interest rate that was less than an overdraft rate, why would people go to the bank to get a loan when they could choose instead not to pay their taxes? This issue has been the subject of discussions with tax advisers for years, with the argument being made that the interest rate is too high given the ECB rate is now practically nil. However, one would not get an overdraft at 8% if one had outstanding taxes to be paid. A case that was brought to court some years ago saw the matter of our interest rate challenged. The judge asked why there was all this talk of the ECB rate and pointed to the credit card rates of more than 20% at that time. The interest rate has to be set at a level that makes sure there is no incentive for people not to pay tax.