Gerry Adams (Louth, Sinn Fein) | Oireachtas source

In respect of the banks, which have caused so much damage to our economy and society, Fine Gael and the Labour Party in particular have talked the talk but have failed miserably to walk the walk. Speaking only last month, the Taoiseach described the refusal by some banks to cut interest rates as a "very serious matter", and said it would not be tolerated. He said: "We are not happy nor is it acceptable that you should have a position that banks are charging mortgages and mortgage holders a much higher rate than they are able to borrow right now." His contribution to this matter is, "We are not happy".

Increasingly, the Taoiseach acts as if he is a spectator or a commentator on the major political issues of the day. He is the Taoiseach. He is supposed to be in charge. Recent research from the Central Bank shows that home owners in this State are paying well over the odds for standard variable rates compared to other EU states. The average rate on outstanding standard variable rate mortgages here is 4.24%, compared to an EU median mortgage rate of 2.8%. The interest rate for new mortgages in Ireland, at 4.26%, is the highest of all the states that were analysed. The eurozone average rate is 2.1%, while in Ireland it is 3.42%. The current situation, whereby some mortgage holders are being ripped off while person next door, on a tracker mortgage, is paying the market rate is unacceptable and unsustainable. This is not a normal banking environment.

The banks have created a situation and the Government has tolerated it. For all its protestations, the Government allows it to happen. It is bad for householders, it is bad for families and it is bad for the economy.

There is no more pathetic a sight than watching Ministers whinge and whine about the failure of the banks to act fairly and then do nothing about it. Ministers and Government Deputies bleat about the great sacrifices of the Irish people. They praise, laud and applaud the great sacrifices the people have borne but at the same time, they cut child benefit and other social protections for the most vulnerable of our citizens and they have taken on the power to do this. They were not mandated to do it. They also have the power to instruct the banks to act fairly and that is what they were mandated to do. That is the type of positive action the people wanted when they elected them in 2011. They wanted a Government to act in their interests and not that of the banks. That is why they got rid of the other crowd; they were perceived as having created and tolerated the entire mess. The Government's approach of going cap in hand to the bank in regard to mortgage rates has got absolutely nowhere.

This Bill is a very reasonable and measured response to the scandal of the veryhigh standard variable mortgage interest rates in this State, which are causing so much distress. I commend Teachta Pearse Doherty for bringing it forward. For the first time, under this legislation, the Central Bank will be able to set a cap after considering the likely economic and social effects. This is an exceptional Bill for exceptional times. It is not a permanent plan. Competition and other reforms are still needed in the banking sector. We have sought to limit the proposal at this stage to those banks which the citizens bailed out; in other words, the banks that we are supposed to own, the banks that the punters are supposed to own and the banks of which the people are supposed to have ownership.

It is very clear that the current situation, which could be at least rectified to some degree by this Bill, is going to be tolerated by the Government. The Minister for Finance said that the types of measures Sinn Féin proposes in this Bill will be considered in the budget, if they are still needed. If it is good enough to be in the budget, it is good enough to do now. That is what mortgage holders want. Banks have a moral obligation but they are not run on the basis of morality, no more than most politics, but they have to be encouraged and legislated into giving something back to a society and an economy to which they have done so much damage. They need to be forced to end the rip off of hard-pressed mortgage holders. That is what this Bill will do and I urge all Deputies to support it.

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