Pearse Doherty (Donegal South West, Sinn Fein)

We are all aware that the number of mortgage holders in distress is increasing daily. As of March this year, there were 86,271 mortgage holders in distress, which equates to approximately 500 families being subjected to serious mortgage distress every week. We know that 50,000 mortgage holders are more than 12 weeks in arrears. This is the largest increase in the level of mortgage holder distress since the Financial Regulator commenced releasing figures in this regard. New figures to be released this month by the regulator will show the impact of the European Central Bank interest rate increase announced in April. I am aware the banks are deleveraging and reducing their costs. However, there is a clear commitment in the programme for Government to direct any mortgage provider in receipt of State support to present to the Government a plan, over and above existing plans, of how it intends to cut its costs by a sufficient amount to allow it to forgo a 25 basis points increase in its variable mortgage interest rate. There is a good indication that the European Central Bank will again increase the rate later this week. This will be the second announcement and we are expecting more. Is the Minister directing the banks to reduce their costs in order that they will be able to forgo the 0.25% increase? Has he asked any of the relevant banks, as provided for in the programme for Government, to reduce its costs sufficiently so as to ensure the interest rate increase will be absorbed within the bank structures, thus relieving the concern of the 200,000 people concerned about the forthcoming announcement?

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