Charlie McConalogue (Donegal North East, Fianna Fail) | Oireachtas source

I am very disappointed that the Minister of State did not outline why the best the Minister could do when negotiating with the banks for a loan scheme was an interest rate of 10.8%, particularly when credit unions, with which the Government did not engage, are able to offer students loans at a rate of 6%. It is a pathetic effort on behalf of the Government that this is the best that can be done, particularly coming from a Government that had promised not to increase the fees for which those students now must find the money. The Minister of State's party promised to introduce a student loan scheme to be backed and operated by the State. This is similar to schemes in other countries where loans are available to students at interest rates close to zero. We only need to look across the water to Britain for an example of that.

I ask the Minister of State to outline how such a punitive interest rate is being charged. Having broken previous promises to students, how did the Department fail to strike a better bargain with banks, given that it encourages very good future customers who will prove to be among the most profitable? However, that bank is charging an interest rate of 10.8%. Having let them down on previous promises, how was such a pathetic deal reached on behalf of students by the Government?

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