Joe Costello (Dublin Central, Labour)

I am delighted to have an opportunity to speak today. The debate is important for two reasons, first because we are having it in the Chamber. The Minister of State, Deputy Roche, and Deputy Durkan are great champions of bringing as much European Union business to the Chamber as possible. I hope in the future that this will become a feature of how we conduct our business in the House.

A great deal of work has been done by the Joint Committee on European Affairs. It is extremely important that when its work is done that it sees the full light of day in plenary session in this Chamber. European affairs impact to an ever greater extent on this country, the economy and our lives.

We are discussing an extremely important issue. As both previous speakers indicated, this is entirely about the consumer; getting a better deal for the consumer and on a broader plane than is available domestically. In many ways that is the template of the European Union, namely, where areas of competence can be extended, that is done. We should extend our business across borders as far as possible, and if we can get a better deal for the consumer throughout any of the 27 member states of the European Union, then that should be pursued. The free movement of capital as well as labour are essential pillars of how the European Union conducts its business. That is the case for the small operator just as much as for the big one. As long as we put sufficient regulations and supports in place, there should not be any borders and I welcome that very much.

I echo what the Minister said in his closing remarks, that the national broadcaster, RTE, should be more cognisant of European Union matters dealt with in this House. It should recognise that those matters that we have been debating in recent months are not unrelated to the referendum we had on the Lisbon treaty. The dialogue that is taking place must get to the broadest possible audience because we have to engage the public in European affairs. If we do not engage the public there is a danger that the perception of the so-called democratic deficit and a sense of isolation will increase. There is also a danger that it will lead to hostility towards some of the institutions of the European Union. We would like to see European affairs presented in an attractive fashion. There is no reason we should not have an appealing programme that does not take place at midnight or 1 o'clock in the morning, which is the slot generally available for Oireachtas proceedings. The business of Europe should be dealt with by means of a more attractive package.

The committee conducted its proceedings in an appropriate manner. All the stakeholders were invited, including the Department of Finance and the Financial Regulator, the Irish Banking Federation and Financial Services Ireland. All delegations presented their views on the measures before us to improve the efficiency and competitiveness of the European residential mortgage market. The four objectives, as indicated in the White Paper prepared by the European Commission, are extremely important. They include the facilitation of the cross-border supply and funding of mortgage credit, an increase in product diversity, an improvement in consumer confidence and the facilitation of customer mobility.

The first objective, namely, to facilitate the cross-border supply and funding of mortgage credit, encapsulates the other objectives. That is an eminently desirable objective because we are talking about making available to the consumer a line of credit that may not be available otherwise. It is the case that 47% of European Union GDP is residential mortgage credit, which is a colossal amount. Ireland is top of the list in that respect. We seek more residential mortgage credit to purchase homes than any country in Europe.

Credit has dried up in this country. We can talk as much as we like about the over-extension of the construction industry, the housing market in terms of loans and the lack of self-regulation by some financial institutions. Those are important matters that we must examine, but the nub of the situation is that the consumer who wants to purchase a residential property must have access to the market to get a loan. If the domestic market is not able to supply it, then every avenue should be open to people to make the credit available. There is no reason the European market should not be available to us.

If the Acting Chairman were a big time operator in the city or in financial services in Dublin and he wanted to transfer large quantities of capital he would have no problem accessing any market in the European Union. However, if he were a poor punter who wanted to buy a house he could not get a mortgage in Germany, France or Italy. Is that not outrageous? Surely the European Union should be about the free movement of capital, as much for the small operator or citizen as the large-scale financial manager. This is the nub of what we are discussing today. Once this principle is recognised, it is only a matter of getting the formula right to ensure it is realised. We must ensure this is done correctly. Our committee has been working on getting it right for the Irish consumer and, I hope, consumers in each other member state. It is crucial to put together a package that fulfils the aims of the White Paper of the European Commission.

I was a little disappointed with the delegates from the Irish Banking Federation and Financial Services Ireland, but not with the Financial Regulator, who was very positive. The Chairman of the Joint Committee on European Affairs, Deputy Durkan, will remember that members had quite a tête-À-tête in respect of why eminent bodies such as the Irish Banking Federation and Financial Services Ireland were reluctant to engage in this process. A statement was made that the Irish consumer likes to shop in Irish shops. That is new to me as I believed the consumer likes to shop where he or she will get the best bargain. Some of the delegates before the committee attempted to put forward many arguments as to why we should not embark on our present course rather than embrace it positively and ensure the consumer is king. The arguments were, to some extent, anti-competitive. The delegates were certainly very cautious. The committee members took this on board and reflected very strongly on the fact that their present course is the best way forward.

I hope that, before long, the final package that will enable us to open up the market will be put together. There are obviously key issues to be addressed at the same time. Regulation is extremely important. To date, we have not been able to regulate our domestic residential property market properly and we have witnessed the consequent fallout. We need EU regulations and regulations that will apply effectively in this country. The idea of a lightly regulated, self-regulated or unregulated market is just not on because no protection is afforded to the consumer. As I stated, the consumer must be king in all circumstances.

Let me outline a very interesting aspect of the proposals. In many member states, mortgage insurance is not required when one takes out a mortgage. This means mortgages are much cheaper in other member states. There are sufficient legal protections in place, including the banks holding the deeds, such that the extra financial burden Irish mortgage lenders impose on purchasers is not required. It is quite expensive to obtain insurance for every property for which one receives a loan in Ireland. I would like a legal and regulatory mechanism put in place to lower or dispense with this cost.

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