Eamon Gilmore (Dún Laoghaire, Labour)

The Government has been very firm with the banks on this issue. The Deputy was not present at the meeting yesterday which he has portrayed as a polite conversation. The Government was very clear with the banks about its wish and determination that the interest rate reduction be passed on to customers. We made it very clear to them that if that did not happen, the question of introducing legislation was one the Government would consider. We have asked the Financial Regulator for his assessment of what is required. I think the Deputy will agree that it would be prudent to await that assessment from the Financial Regulator and to base whatever decision we make on legislation on it, but let us be clear: the Government is very determined in this regard. The interest rate reduction announced by the ECB must be passed on to customers. This was set out in very clear terms by the Government yesterday. No one leaving the room was in any doubt that there was no ambiguity about the Government's intention and determination that mortgage holders and those borrowing from the banks should benefit from the reduction in the interest rate.

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