Michael Noonan (Limerick City, Fine Gael)

The Deputy is correct. There is a wide variation in mortgage charges. AIB has confirmed that it is reducing its 3.25% rate to 3%. No change has been signalled in Bank of Ireland's 3.95% rate. EBS has confirmed that it is reducing its 4.93% rate to 4.68%. Irish Nationwide has confirmed that it is reducing its 4.48% rate to 4.23%. KBC has confirmed that it is reducing its 4.5% rate to 4.25%. National Irish Bank is increasing its 3.4% rate to 4.35%. Permanent TSB is reducing its 5.69% rate to 5.44%. No change has been signalled in Ulster Bank's rate of 5.15%. There is a very big variation among the rates. The only thing that really gets rid of price variations in an economy is competition. We should encourage competition. This is one of the difficulties with having two pillar banks. We are pleased that Ulster Bank is committed to continuing to operate in the Irish market. The authorities would suggest that if we have a strong third banking force, that will provide the level of competition that is necessary. There is room for Mr. Matthew Elderfield's approach.

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