Enda Kenny (Mayo, Fine Gael)

On Monday last, the Permanent TSB announced an increase in its interest rates for standard variable rate mortgages, which will result in €42 million being taken from its mortgage payers. The clear indication is that other banks intend to follow suit, which would mean the removal of a further €300 million from the pockets of mortgage holders, of whom up to 350,000 may be affected. As the Taoiseach is aware, banks always have had a duty of care. However, although there have been many instances of people being offered loans amounting to five, six or ten times their salary or of people being approved for loans for which they never applied, there has been no concession in respect of debt forgiveness by the banks, which knew what they were doing. While the Government has given the banks a guarantee, has established NAMA and engaged in recapitalisation, the end result is further pressure on up to 350,000 mortgage holders. What has the Government done to suggest to banks that there is another way and that they do not need to impose interest rate increases on standard variable mortgages held by hard-pressed people? What has the Government done to prevent further mortgage increases taking place?

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