Michael Noonan (Limerick City, Fine Gael) | Oireachtas source

When the Central Bank invites consultations, the Department of Finance usually makes a submission. We are preparing one and it will not be a Government submission, rather it will be a submission by the Department of Finance in response to the Governor of the Central Bank's invitation to make a submission. It does not have to be an institutional submission. Any Deputy who has well formed views can make a submission before 8 December. Obviously, that will have influence also. The Central Bank is aware that Deputies have very close contact with their constituents. The views of Deputies are valuable when the Central Bank is considering its policy on issues such as prudential rules for mortgages. I agree that there should be rules. We can debate whether a requirement to have 20% of the mortgage would be too high. In the consultation paper there is an exception whereby a bank can lend up to 15% of its loan book in mortgages in excess of 80% of value. If there was a guarantee, it would provide for extra flexibility. While the two issues are separate and should be considered separately, there is a connection between them.

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