Enda Kenny (Mayo, Fine Gael) | Oireachtas source

I understand that Bank of Ireland announced last October that it intended to introduce a range of increases in interest rates with effect from 18 December 2012. The credit card purchase interest rate will increase to 17.8% variable APR, while the rate for the classic credit card will increase to 19.9% variable APR. The rate for the remaining number of personal credit cards will increase by 0.7% APR with effect from 18 December 2012. No increase will be applied to the student credit card and there will be no change to the introductory or cash advance variable APRs for Bank of Ireland personal credit cards.

This bank is owned by private investors with a 15% share held by the Government and this area is not regulated by Government. I can confirm that the Government is in constant contact with the regulator in the Central Bank to ensure that he is happy he has the facilities, authority and power he needs in regulating the financial sector. This issue is very difficult for many people who have run up huge credit card bills. The economic indicators show that for the first time in a number of years, we have had three consecutive quarters of growth. The more we can proceed in that direction, the more competition there will be in the credit card area.

I do not like this but the Government is in constant contact with the regulator. I have written to him on a number of occasions stating that if he considers that he should have more appropriate powers, the Government will respond to that. This is a bank owned by private investors. We want it to be out there in the market. The Government has a 15% shareholding and this area is unregulated.

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