Finian McGrath (Dublin North Central, Independent) | Oireachtas source

The Central Bank (Mortgage Interest Rates) Bill 2015 provides the Central Bank with the power to direct covered institutions to lower mortgage interest rates in certain circumstances. I welcome this Bill as a positive, helpful and sensible proposal. It is also very relevant to what is happening in Ireland in 2015.

All Members have had families coming to our clinics and offices with their mortgage problems. These are decent, hard-working families, most of whom wanted to pay something and yet were being pushed around by banks and some of the financial institutions. They need our support and help and they need proper and adequate support from the Government. Many lost their jobs and yet they are being hammered. They are afraid and they are angry when they see the wealthy elite in Irish society getting millions written off while they scrape to survive. That is the reality for these families. Action is needed and there has been too much talk and not enough support for these families.

I refer to the detailed proposals in the legislation. Section 1 defines “interest rate” as the variable rate mortgage whereby the interest rate varies to reflect market conditions;"viability" means the ability of the covered institution to sustain or maintain growth and development in the market. There is concern about overheating of the economy. The Government is considering the idea of giving tax cuts to people who are very well-off and yet services need investment. A balanced approach should be achieved by putting money and investment into services, in particular services in health, education and disability.

Section 2(1) proposes:

The Bank shall consider from time to time whether it is necessary to carry out a review of the rate of interest being charged by the covered institutions on standard variable rate mortgages and may issue a direction to a covered institution instructing it to vary the level of interest it charges on standard variable rate mortgages.

Section 6 proposes:

(1) A person commits an offence if he or she without reasonable excuse, does not comply with a direction issued by the Bank under this Act.

(2) A person who commits an offence under this section is liable—

(a) on summary conviction, to a class A fine or imprisonment for a term not exceeding 12 months, or both, or

(b) on conviction on indictment, to a fine not exceeding €250,000 or imprisonment for a term not exceeding 5 years, or both.

As I strongly welcome this legislation and support it I am thinking of the 300,000 variable rate mortgage holders. They need our practical support and they need action from the Government parties. I welcome this Bill.

It is strong, decisive and inclusive and, above all, it helps mortgage holders who need our support in the current climate. The fat cats in society seem to be always getting away with things and getting the breaks. Now it is time for justice for all these families and, particularly, for the mortgage holders. I welcome the legislation and will strongly support it.

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