John Perry (Sligo-North Leitrim, Fine Gael)

This is important. When those people approach the banks and request that they be allowed to pay interest only or make an alteration to their original agreement with the bank, they use the opportunity to increase the rate of interest being charged to homeowners. This is important. If we are underwriting the banks, they should help people. Many of those people are on ECB tracker mortgages, which are favourable, and banks are deliberately trying to move people on to less favourable rates to increase their profits. I must put that point on the record. Given that we are introducing a guarantee for the banks, I call on the Minister to ensure that this practice ceases immediately and that banks make every effort to help people over their difficulties. We are helping the banks without crucifying them. If people require to have repayments reduced to interest only over a 12 to 24 month period, it should be granted to help them get over the difficulties. It is imperative that we keep people in their homes and that we do not enter the downward cycle being experienced in America. This is a two-way partnership. People have donated generously in this instance and it is imperative that the financial community responds by treating them decently and correctly.

We must examine the role of the Financial Regulator, the Central Bank and the banking institutions. Deputy Shatter referred to the legal case for banks that are excluded, the privatisation of banks and the partnership with Government in the past ten years when in excess of €160 billion has benefited the Exchequer through value added tax, other taxes and legal charges. That is a significant amount of money. It is important that we bring financial stability to the economy but it is equally important that we look after borrowers and small business people who are being penalised by banks.

I am dismayed that none of the banks has made any comment on the announcement by the Minister yesterday. That is appalling. I thank the Ceann Comhairle for his forbearance but it is important that I put on record my feelings on the matter.

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