Pearse Doherty (Donegal South West, Sinn Fein)

People on the street who are in mortgage distress or are in danger of slipping in it, particularly those who have mortgages with Bank of Ireland, want to know what the elected Government of this State is going to do to enforce its stated policy, namely, that banks pass on the ECB interest rate decrease. We are not talking about a Government interfering in the private market. The bank is subject to billions of euro of taxpayers money, liquidity from the ECB which is guaranteed by the State and a State guarantee which is likely to be extended by the Government at the end of next month. The bank would not exist if it were not for the support of the State.

The Minister of State, Deputy Brian Hayes, described the decision of the bank not to pass on the interest rate cut as pathetic. It is pathetic that the Government has not used the powers it could introduce in the House to force banks to pass on the ECB interest rate cut. We have the report of Mr. Matthew Elderfield. Will the Minister or Government do anything about the fact that Bank of Ireland now receives money at a reduced cost but is unwilling to pass that on to mortgage holders?

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