Jerry Buttimer (Cork South Central, Fine Gael) | Oireachtas source

I commend Deputy McGrath on introducing this Bill and I welcome the debate. The issue is one of contention and emotion because it relates to the ability of people to pay and, predominantly, to their family home. In terms of having a healthy, functioning banking system, and mindful of the fact that we are now seeing banks return to profitability, they have a duty to engage with customers, and to be practical about that. It is about ensuring that people pay a lower rate in terms of these mortgages. I am mindful of the debate at the banking inquiry in recent weeks. The legacy of that financial crisis is on the floor of the Dáil tonight.

I was struck by the remarks of Professor Honohan to the Joint Committee on Finance, Public Expenditure and Reform in May when he stated:

Given the wording of the [standard variable rate] SVR contract, I assume that borrowers agreed to [those] SVR terms largely because they trusted the banks to behave in a fair manner with regard to interest rate adjustments.  And for decades it seems that this trust was, by and large, not misplaced.  Is this still thecase?

That is the fundamental question. Is this the case, and are the banks acting in a manner that is fair and just?

I welcome the fact that the Minister and the Taoiseach have engaged with the banks, and Deputy McGrath has put forward a different proposition in his Bill, but if we consider what the Taoiseach and the Minister prefer in terms of the two pillars of the penal banking levy or consideration in terms of the power to be given to the Central Bank to regulate interest rates, that poses the question of what is the best approach to take. Deputy Lawlor spoke about the carrot and stick approach. Deputy McGrath wants a different approach. Professor Honohan does not necessarily want the Central Bank to have that power. The Minister speaks of competition, as does Professor Honohan, and we all want competition in the banking profession, but we also need to see a banking profession working with people and giving them a lower variable rate.

History will show that the banking system failed the people over the past decade. It led people down the wrong route. We all remember the offers that came in the post of money to extend one's house, change one's car, go on a second holiday, buy a foreign property or upscale one's house.

We all know what happened. There was no one driving the car. All of the people in it were in the back seat partying. These were the people in charge for 14 years.

We are all agreed on the need for the banks to lower their rates and allow people to pay less. We are all agreed on that. At the same time, the philosophical question of who should set the interest rate must also be discussed. Deputy Durkan is correct that this is not about politics or political expediency: it is about doing what is right for the people. We have all sat in the offices of banks and in our own offices with people who were crying because their homes were about to be repossessed. We have also sat down with members of the banking profession and pleaded with them not to intervene and take away people's homes.

There has been much talk about politicians who were in the driving seats having their pensions restored by way of changes to the FEMPI legislation. I hope we do not go down that road. In my opinion, that would be grossly wrong. I hope we find a mechanism by which those concerned, the chosen few, cannot be given back their money.

What we are discussing tonight is the relationship between the banks, the taxpayers who bailed them out and the banks' customers. The banks should not be returned to profitability on the backs of, to use a phrase I use frequently, an gnáthdhuine, the ordinary person. They should not be allowed to do that. I welcome that the Government is committed to ensuring this situation is redressed either through the budget or prior to that.

I am aware that my time has expired. I am very passionate about this issue. I know that Deputy McGrath's motivation is not political and I hope that he will not call a vote on this tonight. We are united in this in terms of our end game.

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