Éamon Ó Cuív (Galway West, Fianna Fail)

The banks' refusal to pass on the reduction to both domestic and business borrowers is absolutely scandalous, given the hardship that will be caused.

It has been brought to my attention that banks are using a small-print clause in contracts in the case of businesses which borrowed at rates linked with the Eurobor rates. They are now changing and increasing the rates to cost-of-fund reference rates and using the small-print clause results in a severe extra cost to businesses.

Will emergency legislation be introduced in the House next week to give the Financial Regulator the power to force the banks to pass on the ECB interest rate reduction and honour the rates offered to business customers and accepted by them in good faith? Will the Government replace forthwith all public interest directors who are now not acting in the public interest? Will it seek an immediate emergency general meeting of the guaranteed banks to remove the remaining directors? Will it inform the guaranteed banks that if they do not conform on this issue, the cost of the guarantee will be increased next year by the amount they are not passing on in reduced rates associated with the ECB interest rate reduction? Will it inform them that the extra funding will be used to provide financial assistance for those in difficulty with mortgages or business loans owing to the reckless policies followed by them? Will it inform them, particularly AIB, 94% of which I understand is owned by the State, that all senior staff must conform with public service norms in their salaries?

It is time the Government walked the walk rather than just talked the talk. I would appreciate it if I could receive specific answers to the very direct questions I have asked rather than the usual Labour Party revisionist history lessons to which I seem to be treated each week?

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