Michael McGrath (Cork South Central, Fianna Fail)

I thank the Members of all parties and none for contributing to this debate. There are some key themes associated with my party's motion. The motion should not be objectionable in any way. It is designed to be constructive and to assist the Government in dealing with issues that clearly need to be dealt with.

With regard to lending to SMEs, we have called for a very simple change. Instead of measuring the lending performance of the banks by examining the amount of credit approved, we should measure instead the amount of money drawn down and put into circulation in the economy. At the very least, the Government should report those figures in a clear and transparent way and not simply accept what AIB and Bank of Ireland tell it about the amount of credit they have sanctioned.

On the issue of mortgage arrears, all we are asking is that the Government make a statement on its implementation strategy which pulls together all the various elements and sets out how to deal with the issue. To say, as the Minister of State, Deputy Brian Hayes, said last night, that the Keane report is being implemented is simply not true. I found out in the response to a recent parliamentary question that one of the key recommendations in the report, that we set up an independent mortgage advice function, is still being considered by the Government. It has not yet made up its mind as to whether it is a good idea. All we ask is that the Government come forward with its strategy, as some Government Members have called for over the past two nights.

The main purpose of the motion we have tabled is to put the spotlight on the standard variable rate being charged by State-owned Permanent TSB. Before I address this, I must mention the customers of EBS, who are astounded that, despite the EBS now being wholly owned by AIB, they are paying a standard variable rate of up to 4.45%, which is well in excess of the rates charged by the parent company to its customers. They are asking why this is being allowed despite the Government having extolled the virtues and benefits of the merger of the two banks last year.

In setting out the debate on the question of Permanent TSB last night, I laid out in comprehensive detail the reasons the Government should be putting pressure on Permanent TSB to reduce the standard variable rate it is currently charging. That the customers are being treated unfairly is absolutely irrefutable. The Government should just accept that. It has not even said that much.

Up to 80,000 customers are being crucified by the rates being charged by a bank that was bailed out by the taxpayers through the guarantee and through recapitalisation of up to €4 billion. For the Government to hide behind the line that the bank is a commercial entity and state there is nothing it can do simply does not stand up to scrutiny. This is because it set a different bar for AIB last November. Very publicly, the Government hauled the bank into a meeting. There was a stand-off for a few hours and the Minister of State, Deputy Brian Hayes, emerged and stated it was pathetic that the bank was not passing on the ECB rate reduction. Eventually, however, the bank conceded and passed on the reduction. All we are asking is that the Government apply the same principle to the customers of Permanent TSB.

Many of the facts have been put on the record and there is no need for me to repeat them. The Minister of State and his colleagues know the real difficulties faced by families. The Minister of State, Deputy O'Dowd, said he and the Government sympathise with the customers of Permanent TSB. They do not want sympathy as it will not help them to make their mortgage repayments, clothe and feed their children and keep a roof over their heads. What they want is action.

My party is calling on the Government to address the blatant anomaly in the interest rate charged by Permanent TSB to its standard variable rate mortgage customers. The Government should use the same zest and determination in dealing with Permanent TSB now that it showed with AIB last November. All Members should unite tonight behind this motion that sends a clear message to the banks that in their hour of need we came to their rescue with a bank guarantee and recapitalisation, allowing them to serve the needs of the economy. It should not be the other way around. I am calling on the Government to intervene in a proactive way and give the customers of Permanent TSB the relief they deserve. They should not be treated in any way differently to the customers of AIB or any other bank in which this State has a controlling interest.

I commend the motion to the House.

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