Pearse Doherty (Donegal South West, Sinn Fein) | Oireachtas source

Here we are again, only this time, the last fig leaf for the Government has been removed. Since the Government voted down my Bill less than a month ago, the banks have given their answer. They have said a definite "No" to decreasing their standard variable rates in any real way. I recognise that Permanent TSB has moved, but Bank of Ireland and Ulster Bank have not budged on reducing their standard variable rates. In the case of AIB, it has made only a tiny move. The move by Permanent TSB is very much a nuanced one. It appears that those who need the cut most will be those least likely to benefit from it. The Minister set a deadline that has come and gone. Three of our four biggest banks have not budged in any real way. Meanwhile, each day four family homes are either repossessed or surrendered. Statistics from the Central Bank show that in the first quarter of 2015, 351 homes were repossessed or surrendered.

I welcome Deputy McGrath's Bill, which is another genuine attempt by Members of the Opposition to deal with this issue. The core of the Bill is that the Central Bank should be allowed to declare a market failure and take action. This is a sensible approach, because there is a market failure. It is as clear as day that there is a market failure. We do not have a functioning banking system and we should not pretend that we do.

I have some minor concerns about this Bill. For example, the idea that one lender can represent a market failure while others do not seems counterintuitive. Likewise, the imposition of fines as penalties presents some problems. Recent information I have received shows how reticent the Central Bank is in fining any financial institution, and that those fines, when levied, are minimal and can be passed on to the consumer. However, these are issues that can be thrashed out, in a genuine spirit of trying to reach agreement, on Committee Stage.

To put this and last month's debate into context - I have said this before but it is worth repeating - in 2011, when I challenged the Government on its failure to stand up to the banks and to pass on the ECB rate decrease at that time, the then Tánaiste, Deputy Eamon Gilmore, told me: "Deputy Doherty need be in no doubt that this Government will act decisively, forcibly and effectively with the banks." There is a new Tánaiste, but the same old guff persists. As in the case of other issues such as mortgage arrears and bankers' pay, this Government is content to let the banks decide policy. The Taoiseach laments that the friendly reminder the Government gave to the banks about the deadline that has passed on mortgage rates has largely been ignored, but we are all told, "Don't worry because the Minister will follow it up." This is not a credible position. This Government is not willing to stand up to the banks. This has been proven over the past four years.

As in the case of the Bill I introduced last month, this Bill introduced by Deputy McGrath seeks to empower the Central Bank to act in the interests of society and the economy. The refusal of the Government to take action, so that it is only shaking its finger at the banks, is not good enough. Sinn Féin supports this Bill. Like the Bill I introduced last month, it represents a genuine call for action and not just words. This is an issue of direct relevance to hundreds of thousands of families across this State. We do have a market failure when it comes to mortgages. Some call it a lack of competition and so on, but it is a market failure. It is becoming more and more obvious that this Government wishes to ignore the reality. Why it wishes to ignore the reality is a question of debate. One can imagine that the sale of the banks is a factor in its thinking.

As I stated last month, when we look coldly at two facts, it is inconceivable that the State would not move to use its influence at the banks it owns to make it possible to decrease rates for its citizens. It makes sense at this point of our economic development to act in the people's interest. There is no reason to delay, no reason to give more time and no reason to be satisfied with some banks indicating that they will reduce rates by the bare minimum. I fear that those of us who prioritise the welfare of society over the profit of banks are talking to the wall when it comes to this Government.

The Minister, Deputy Noonan, huffed and puffed but the banks did not move. We are told there will be more meetings and that we should not worry. Given the record of this Government, I do not think the banks are trembling in their shoes or losing sleep. The banks have the measure of this Government. They have sized it up. They know this Government will not act in the interests of citizens when they say "No." All we have to do is compare this to the events of the past few days. When it comes to the mighty one-parent families, the Government has no problem moving decisively. When it comes to the courageous people who have fallen on hard times and cannot pay their debts, the Government has no problem ramming through legislation to impose attachment orders to what little money they can scrimp or save to pay off their debts. But when it comes to the banks, it is a case of taking out the kid gloves, treating them with deference and bowing to their every demand. Even with an election around the corner, the Government will not stand up to the financial institutions in the interests of citizens. We are led to believe that everything will be okay on the night. September will see another round of meetings and the Minister will huff and puff again and ask the banks to do the right thing. We own a number of the banks. The Minister for Finance holds the shares on behalf of the Irish people.

It is right and fitting that the Irish people would expect, if not demand, that their Government acts in their interest instead of the interest of banks which are driven only by making profits. This, however, is a Government that is driven to see those banks make as much profit as possible on the backs of the Irish people, so that the institutions can be sold off to whichever vulture is ready to pick up the scraps.

The time for posturing and delaying is over. The time for mealy-mouthed words is gone. It is time now to act on behalf of citizens. This Bill is one of a number of proposals from the Opposition to allow the Minister to bring forward legislation. It has the same purpose as the legislation the Minister indicated he may bring forward himself later this year. Why wait until then? Now is the time to act on behalf of the 300,000 people who are suffering as a result of the ultimate rip-off by the banks in respect of variable-rate mortgages.

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