Mr. Ed Sibley:

I will start by talking about the market. We operate in a market economy where we hope there is competition in the market. The Bill refers to market failure and the need for competition. In a competitive market there will be a choice of products. At any given moment there will be a differentiation between products and their price. Over a period the choices and experiences of consumers will vary greatly if the market works in a competitive manner.

Is it fair to have a situation whereby two borrowers who live next door to each other in identical semi-detached houses but one householder is on an SVR while the other is on a tracker rate? One borrower could be in sizeable negative equity having paid a lot more for the same house. Is that fair? One borrower could be in very significant mortgage arrears and not contributing to mortgage payments relative to the other one. Is that fair? I am not sure it is for the Central Bank to opine on whether there is a degree of wisdom or luck in the choices made by consumers. The Central Bank is responsible for making sure that there is clear transparency, and that there is consistency in terms of products and how the terms and conditions are articulated and applied. Over time that will result in differences in terms of the experiences of consumers.

My colleague, Mr. Sheridan, will comment on the CCPC point.