Michael McGrath (Cork South Central, Fianna Fail)
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The first priority, therefore, is to stop the problem and the harm. Presumably, it is a priority to get the remainder put on the correct rate as quickly as possible.

On the question of the prevailing rate, I know Professor Lane will not be drawn into a debate around individual banks. However, this issue arises in the case of a number of banks. AIB is certainly one of them where it has identified a prevailing rate of 3.67%. Will Professor Lane advise the committee how the Central Bank approaches that question as to the appropriate prevailing rate? The ECB issue is fixed. The margin is not specified in the contract, but what is specified is that the customer has the right to revert to a tracker mortgage at the prevailing rate. If there was no prevailing rate at the time, is it not reasonable that they would be put on the tracker rate that applied previously? How is the Central Bank approaching this question?