Shane Ross (Dublin South, Independent) | Oireachtas source

Perhaps I could be allowed to make the Dáil a Deputy Reilly free zone for the next few minutes to the relief perhaps of some members of the Government. That issue has tended to overshadow an equally important issue which happened three days ago and one day ago. Three days ago AIB bondholders were paid €1 billion and one day ago AIB mortgage holders were charged another 0.5% on their mortgage if they have a standard variable rate. Those mortgage holders, the borrowers, who are affected by this do not miss the connection and they see their money and the extra payments they are making as a direct payment going to the bondholders.

The Tánaiste will be aware, because it has been well publicised, that those with a not unusual mortgage now of up €300,000 will pay an extra €1,080 per annum as a result of this 0.5% rise. I do not know if he realises how many of these people simply will not be able to pay that rise - how many of these people he is going to be asking to pay more money and more taxes on the same properties in the forthcoming budget.

We are now reaching a situation where middle Ireland simply cannot pay what the Government is asking it to pay. I ask the Tánaiste to please not come back to me and say this is not a Government matter. I would agree with him if he were to say this has arisen because the banks, particularly AIB, have been allowed to go walkabout. There is a kind of declaration of independence by AIB at the moment where it is taking its own decisions and crucifying its mortgage holders. In the meantime the Government, which owns nearly 100% of the bank and has supposedly two public interest directors on its board, is washing its hands of a huge problem where it can exercise a serious level of control. Is it Government policy that it contributes to and helps the increasing problem of the crippling mortgage debt we are now facing by allowing this bank, which it effectively fully owns, to add to the debt by putting up mortgages for those who cannot afford it?

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