Michael McGrath (Cork South Central, Fianna Fail) | Oireachtas source

The Minister seems to believe the banking system in Ireland has been repaired, but I beg to differ. I use a very simple measure. Today, a young couple seeking to take out a mortgage for the first time will invariably pay an interest rate of 4.25% to 4.5%. A similar couple in the eurozone will typically pay a rate of approximately 2.5% for that mortgage. The same story applies to SMEs which are paying far above the odds to borrow here than in other member states. The ECB has been reducing interest rates, but the Irish economy has not benefited to the extent that it should from these rate cuts because the banks have not passed them on to people on variable products, be they SMEs, personal borrowers or mortgage holders. It is an issue that must be dealt with.

I would love to go into the issue of mortgages, but I lost time while being heckled. I will not eat into the time of my colleague, Deputy Seán Fleming.

It is welcome that the Minister is finally abolishing the pension levy at the end of next year, having already broken his promise. It was to be gone at the end of this year. I said in 2011 when the Minister introduced it that I did not think it would end in 2014. Instead of ending it, he increased it to 0.75% and is retaining it next year at 0.15%. All of the deferred members of the Irish aviation superannuation pension scheme are contacting Members of the House. They are facing a 60% cut in their benefits.

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