John Perry (Sligo-North Leitrim, Fine Gael)

I compliment Deputies Bruton and O'Donnell on the way they have handled this debate. I am pleased to contribute to the debate which is of vital importance to the wellbeing and vitality of the State in the years ahead. The matters being discussed today have the potential to impact on the lives of all citizens and fundamentally shape the type of society in which we live.

As legislators, we have been given a heavy responsibility to find the right solution to this problem and there is a very real sense that we are in uncharted territory. We have not faced this scale and type of crisis previously so we have no rule book on which to rely. However, one thing is sure which is that we must grasp the responsibility placed upon us and strive to get this right which means it is all about control.

The stakes are high. Failure to respond to the crisis that has faced our financial institutions in recent months could fundamentally destabilise our economy and set back the enormous progress made in recent years. It is no understatement to record that recent events have fundamentally changed the nature of commercial and financial life globally and not only in Ireland.

The very fundamentals of the market economy have been challenged with clear recognition that we have near market failure in the operation of the financial services sector in Ireland. In the face of such threatened market failure and near collapse the State has had to step in to rescue the financial system. It is important that the changes introduced result in real change, not only in how financial institutions are regulated but in the way the bank deals with customers.

This issue is about banks and banks have lost sight of their customers in recent years. They have been driven by shareholder demands and customers have been only a number on the scale. We are taking the pressure off banks and it is important that banks take pressure off people with negative equity. There is negative equity in every shopping centre, hotel and private house in the economy. During the past ten years for every €100 million given out, €40 million came back to the Exchequer.

A fair deal for customers must be at the heart of the new banking environment. We must have recognition from the banking community that it exists to serve its customers and not to exploit, overcharge or fleece them, which is the case. If the Minister does not honestly believe that banks will pass on the insurance charge I assure him they will. I guarantee it. A person taking out a loan today will pay a negotiation fee. There must be a new culture that respects customers and puts them at the heart of banking. This is important in any event, but particularly when the customers as taxpayers are underwriting the very existence of the banks.

The regulatory regime should support and underpin the new relationship. I hope the changes brought about by this scheme will lead to a major cultural change in the way banks and the regulator treat customers. The backbone of the economy is made up of small companies. Companies that employ fewer than ten people must pay charges for taking out a loan, lodging fees, cheques and debits. Literally, there is a charge at the door of a bank.

In recent years, we have all heard the banks come out with profits of €2 billion or €1 billion. These profits have completely diminished when one considers the drop in shareholding. Customers have been the pawns. Few Members have stated that the success of the economy was driven by small companies. The way banks relate to small companies is abysmal. Of all representative bodies, that of small businesses should have a voice on the body which regulates the governance of banks. We have seen the debacle in the United States in recent years with regard to corporate governance.

Tracker mortgages are not being offered by any bank at present. This facility has been withdrawn. As we speak, up to 100,000 people will have problems with the repayment of their mortgages. They are being shifted away from favourable rates and being charged higher rates. We are taking pressure off the banks. Will the Minister for Finance speak directly to people being removed from tracker mortgage facilities and being charged penalties and excess charges? We must hear a clear message. People want to know what is being offered to them.

This deal is about saving the banks. What is the Government saying to people under pressure? Hotels, supermarkets, restaurants and small companies are under major pressure. Facilities are being withdrawn from them and they are being charged extra fees. Nobody is speaking for them. In his statement, will the Minister give a direction to the banks that they take the pressure and facilitate people who have been under pressure?

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