Debate resumed on amendment No. 1:To delete all words after “Dáil Éireann” and substitute the following: “acknowledges that: — the Statement of Government Priorities 2014 to 2016 recognised that promoting and encouraging competition and new entrants in the banking sector was required to put downward pressure on interest rates for variable rate mortgage customers, both new and existing; and — the mortgage interest rates that independent financial institutions operating in Ireland charge to customers are determined as a result of a commercial decision by the institutions concerned and the Minister for Finance and the Central Bank of Ireland have no statutory role in relation to the mortgage interest rates charged; notes that: — while the European Central Bank base rates are a factor in determining this interest rate, a broad range of other factors including deposit rates, market funding costs, the competitive environment and an institution’s overall funding are key determinants; and — the improvements in the overall economy, reduction in the costs of funds, increased demand and greater competition between lenders has led to a reduction in the standard variable rate offered by the majority of banks for new customers and for all standard variable rate customers in the case of AIB; recognises that as part of the Central Bank’s work on mortgage arrears, lenders were asked to consider all avenues to help customers in arrears, including interest rate reductions; further notes that: — the issue of regulation of interest rates remains a policy area under active review and that this has been the subject of correspondence between the Department of Finance and the Central Bank of Ireland previously; and — the Consumer Protection (Regulation of Credit Servicing Firms) Bill 2015 will ensure that all mortgage holders in the State will have the protection of the Code of Conduct on Mortgage Arrears and have access to the Office of the Financial Services Ombudsman; acknowledges the actions already taken by this Government to promote competition in the banking sector including the establishment of the Strategic Banking Corporation of Ireland, the Credit Guarantee Scheme and the amendment to section 149 of the Consumer Credit Act 1995 to encourage new entrants to the Irish financial sector; and calls for: — the Government to continue to apply downward pressure on standard variable rates charged by the banks by supporting increased competition in the sector in line with the Statement of Government Priorities 2014 to 2016; and — active monitoring by the Competition and Consumer Protection Commission and the Central Bank of Ireland of the standard variable rate mortgage market to ensure that the rates offered to new and existing customers are competitive and that mortgage holders are aware of, and can switch to, cheaper, lower cost mortgages providers.” - Minister of State at the Department of Finance (Deputy Simon Harris)

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