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

The Tánaiste has taken us on an interesting historical tour as she sees it but she avoided the key issue and she avoided answering my direct questions. The cost of funds for the banks today is in the region of 1%. Bank of Ireland has put it on the record that its cost of funds is 1.15% and yet variable rate customers are being charged up to 4.5%. It is exploitative and exorbitant and there is no justification whatsoever for it and it is being presided over by the Tánaiste's Government. Up until recently, Brian Hayes, MEP, was the Minister of State in the Department of Finance but he is now safely ensconced in the European Parliament. He has stated that variable rate customers are being fleeced and yet the Government does not seem to have a view on this issue.

The ECB rate is virtually zero. Anyone with savings will know that the banks are paying little or nothing on deposits. The cost of funds has never been lower and yet the banks are milking it in respect of the profits they are earning on variable rate customers. Both AIB and Bank of Ireland are profitable again so there is not point in the Tánaiste trying to spin that it is all Fianna Fáil's fault; that is nonsense. The banks are profitable, they are accessing money at 1% and they are charging 4.5% and the Tánaiste is standing over this. I asked her direct questions: does the Government have a view on this? Has the Government discussed this issue directly with the banks? Has the Government discussed this issue with the Central Bank? It would be very helpful if we could have some straight answers.

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