Michael Colreavy (Sligo-North Leitrim, Sinn Fein)

I have five minutes. Yesterday, I read with horror a story in The Irish Times of an order for repossession of a home made against a man who had suffered a stroke. According to the report the gentleman in question made sincere efforts to come to an agreement with his creditors. This may be an exceptional case in that not every person in mortgage arrears suffers the same debilitating medical condition as this homeowner. However, if lending institutions seek to pursue a man who has suffered a stroke, what hope do others have?

Those struggling from day to day perhaps due to loss of or reduction of income face the possibility of losing their homes. Figures released last month from the Central Bank indicate that the numbers of people falling behind on mortgage repayments had increased in the final three months of 2011. The figures reveal almost 71,000 residential mortgages, 9.2% of the total number of mortgages, were more than 90 days behind with repayments. In excess of 53,000 of these were more than 180 days behind and the arrears amount to more than €1 billion.

The Government can assist these people. It is within the Government's power to do so because it is the controlling shareholder in Irish Life & Permanent. Permanent TSB has the highest standard variable interest rate in the market at 5.19%. The variable rate at Allied Irish Banks, AIB, is 3.04% and the high interest rate that Permanent TSB is forcing on its customers is crippling. A family on a variable rate mortgage of €300,000 pays €300 more per month than a family with the same size loan on a tracker mortgage. In these times, €300 is the difference between whether a family can afford to eat, whether a son or daughter can go to college or whether one can sleep at night.

The Government is the major shareholder in Permanent TSB and it should be concerned at the business prudence of having such a high interest rate. If the Government is propping up banks with the money of its citizens, the least people ask is that the Government runs the bank using acceptable business practices. Surely such a high interest rate is not a smart business move. A bank, the sole objective of which appears to be to build up its cash reserves, is not a functioning bank working for the benefit of our people.

Certain financial institutions in Ireland and further afield are not keen to see successful public ownership of a financial institution and would be pleased if any such publically owned institutions were to fail because they were unable to attract new customers. A basic understanding of economics would suggest that an essential part of getting any economy moving again is to get money circulating. The economy needs stimulus not cutbacks. The purpose of the Government should be to help to get money flowing and it has the power to do so in the case of Permanent TSB. It is time to give the people power over the banks instead of giving the banks more power over the people. The Government has the chance to make a real change in people's lives and to offer them some glimmer of hope. There have been far too many stories of repossessions in Ireland in recent years. It is time to help to alleviate this problem.

I will finish with this thought: in any republic worth its name a banking system is either contributing to or a parasite on the back of society. Which description most accurately describes our banking system?

It is good to see Ministers, at last, turn up to hear the debate.

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