Enda Kenny (Mayo, Fine Gael)

This is a matter Deputy Martin and I can agree on. Everybody in the House will have been contacted in their jobs as public representatives about people who are distressed, concerned and very anxious about the difficulties being caused by the extent of mortgage repayments. Deputy Martin is aware that a number of facilities are already in place. The Government put together a group which resulted in the Keane report and its ten recommendations. Arising from that, I can inform the Deputy that personnel from the Minister for Finance's Department have been meeting with different groups which are outside the Keane group and which have proposals to put on the table, as it were, so there would be a full capacity for the Government to respond in whatever way it can. Deputy Martin is aware of the necessity to deal with the personal insolvency Bill, which has a fundamental bearing on the whole question of mortgages and mortgage distress.

In respect of interest rates, I have not prepared legislation and I will tell the Deputy why. Mr. Elderfield some time ago said quite clearly that if he was having difficulty with banks passing on the interest rate reductions, he might well seek support from the Government. I have not had contact from Mr. Elderfield since he made his comments. Nonetheless, I say to Deputy Martin that I do not believe it is fair at all that a bank, because it priced itself in a particular way on tracker mortgages, should assume it can make up for a shortfall there by increases that are causing serious trouble for persons on variable rate mortgages. I do not believe it is fair that this should apply in the case of any banks. The regulator, as Deputy Martin is aware, has a completely independent role in this regard, which is to oversee the level playing pitch that operates in respect of banks and the competition between them.

Arising from Deputy Martin's question, I will say this. If Mr. Elderfield as regulator comes to Government and says in respect of the latest ECB reduction in interest rates, which I support and which may be the first of a number, that he is having difficulty having the banks pass this on to the hard-pressed consumer-----

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