Enda Kenny (Mayo, Fine Gael)

The Government appointed public interest directors to serve on the boards of banks. Is it in the public interest that at this time of economic difficulty, mortgage interest rates should rise, having been driven up by the banks that have been given a guarantee, a recapitalisation and NAMA? As the Taoiseach is aware, the banks' cost structures have not been kept down in line with their European counterparts. I understand that if Allied Irish Banks and Bank of Ireland were to reduce their cost bases to levels comparable to Lloyds or Banco Santander they would save €1.3 billion, which is more than three times the amount they expect to take from mortgage payers. That cost base structure could be reduced by considering private dining rooms, private art galleries, limousines and all of the other excesses that banks and bank boards have put together over the years. Were the banks to reduce their cost structures to European levels, there would not be the necessity to have an increase in mortgage interest. Prior to the banks ever contemplating such an increase, will the Taoiseach - as the Government is the largest shareholder in the banks with public interest directors on the boards - see to it that the Minister for Finance calls in the banks and demands to see their plans for cost structure reduction to bring them into line with European banks and create savings of more than €1 billion? This would also mean there would be no necessity to impose further mortgage increases on 350,000 mortgage payers, 27 of whom came to my office yesterday.

This has gone beyond a joke. The commercial reality is that the dogs on the street know the banks will increase variable mortgage rates. The Government is the biggest shareholder and has provided NAMA, a guarantee and recapitalisation and as such can tell the banks it wants to see their plans for cost structure reduction. Will the Taoiseach give the House a guarantee that the Minister for Finance will call in the banks and demand to see their plans for cost structure reduction prior to them ever contemplating imposing further mortgage increases on 350,000 mortgage holders?

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