Dara Calleary (Mayo, Fianna Fail) | Oireachtas source

I thank Deputy Michael McGrath for putting this Bill before the House. This week marks the fourth anniversary of one of Deputy McGrath's first Bills in this Dáil, the Family Home Protection (Miscellaneous Provisions) Bill, and tonight's Bill, relating to the Central Bank, continues the theme of protecting families doing their best to keep their homes. The warnings, with various signals from Deputy McGrath and Senators MacSharry, Byrne and others from this party, have been consistently ignored over the past few years. Today, there has been discussion on the growing housing problem in this city and across the country, with Dublin City Council left €18 million short for emergency housing provisions. That issue would not be so immediate and serious if the warnings issued by this party around housing had been heeded.

The Minister referred to what is happening in another part of these Houses. In the past number of days, concerns have been expressed about the position of the European Commission and the troika in particular. I have been consistent in the past number of years in querying the role of the Commission, in particular, in standing up for European citizens. It has not done enough and it has stood back in the face of the financial power of the European Central Bank, ECB, and the International Monetary Fund, IMF. It has failed the citizens of Europe and today we have seen a further example of that, as the Commission is failing the 300,000 Irish families on variable rate mortgages first and the citizens of the European Union second. It is doing this by advocating a position that giving them relief through the capacity to spend money in the economy and grow jobs by recognising they are paying over the odds but tying the hands of Irish authorities in doing anything about it. That is a complete dereliction of the Commission's responsibilities to citizens. If we are to have a European Union, it should be a union of people and not institutions. There should be no hierarchy within the Union with regard to the role of the ECB and IMF. It is extraordinary that the Commission would put the interests of bank profitability and future privatisation prospects - these are direct quotes from the today's report from Mr. Niall O'Connor - ahead of the interests of people who are paying over the odds.

The Commission has even acknowledged that the variable rates in this country are relatively high but it argues that slashing rates could discourage new banks from entering the market. That is a difficulty but the Minister's proposals do nothing for it. There are many banks leaving the market, both with respect to home and business loans, but the Minister has not offered any solutions in that respect. People do not have the capacity to switch as houses are in negative equity. The Minister has asked people to switch to the fixed rates, which might be fine for some who see those as suitable products. However, if the variable rate comes under the fixed rate, they will be tied into overpayments. I know some of the banks are offering products in this respect but there are also extra costs being imposed on families who do not have the €1,000 or €1,500 in conveyancing fees necessary to try to pursue the avenue proposed by the Minister. That is a problem, as the extra expenses for switching cannot be met because these families have been trying to pay over the odds to keep a roof over their head for five to six years. These people have looked on as those who bought into the market at a later stage could use products with cheaper rates offered by banks paid for by the profits garnered from those with the higher variable rate mortgages. They have looked on as their house values fell through no fault of their own and while their banks declined to deal with them with alternative mortgage provisions. While everybody celebrates on the recovery of our financial sector, these 300,000 people have been left flailing in the wind without any support.

It was striking to listen to this evening's debate, with all the Deputies who are normally behind the Minister cheering him on. I do not know where they are tonight. They all complained about the banks and said that we needed to do something about them. They were presented with a responsible solution and option but will still come in here in five minutes and vote against the Bill because they are looking to the Minister to do something in October, which is three months away. There may not be anything done at that stage, or if there is action, it will come on the cusp of an election; it will be another one of those back of the truck election promises to speak to the 300,000 people. If the Minister wants to act, he should do it now. He could have done it in May but the banks gave him lip-service. In fairness to the Minister, he took it on but the issue had to be brought to his attention and he and the Government had to be dragged once again, kicking and screaming, to the table by Deputy Michael McGrath and others. Despite the fact that the problem is serious, the Government stuck its head in the sand until it could do it no more. Do not delay any more or add to the misery these 300,000 people are enduring. The Minister should take action now and not wait until September, after the holidays, to package this in a pre-election budget.

I suspect the Minister is serious about this, along with many of his colleagues who have spoken in this debate. They are getting the same people in their offices as we are and they see the pressure that these people are under. Such people are getting no assistance; they will not get a back-to-school allowance or any of the supports that are available. They are trying but struggling, especially at this time of year. We need to try to give these people a signal that we are taking the issue seriously. We need to tell them that the Government, comprising democratically elected people who are responsible to their communities and their neighbours for the mandate they have to serve, is running the country. The Government must be seen as listening every day to the 300,000 people, understanding the pressure they are under. The people must not think that an unelected Central Bank is running the country.

I appreciate the Minister's comments about taking advice from the Central Bank and the lessons we need to learn. The Central Bank has a responsibility to the people, the citizens of the country, and it must understand that the banking system is not fit for purpose and puts the interests of the citizens of the country behind the interests of profitability, market share, the ECB and others. We need some sort of understanding within the Central Bank that it appreciates the magnitude of the problem but, to date, we have not seen that. The representatives of banks have had meetings and only one - AIB - has taken direct action in lowering variable rates. The rest of them have formulated products or snake oil tricks to try to convince the Minister and others that they are doing something about this issue. If a customer cannot or does not change products, it is the customer's fault and not the bank's fault.

The Minister has a crazy few days ahead of him in trying to help resolve the issues around Greece but in that resolution, people's lives must be put to the fore. There must be some sort of understanding within the troika, the European Commission and all the other elements that people's lives are being affected. It matters to the Greek people that their lives are put to the fore, instead of the interests of banks and bondholders, but it matters here too. There are 300,000 people who have done nothing but fight to keep a roof over their head and their mortgages up to date. They have tried to keep their house steady and their relationship with the bank correct in the face of all other pressures. They should be given recognition for their efforts and told that we appreciate that through their actions, they have contributed to a banking and economic recovery. They do not want what they have seen this evening in the form of a pat on the back and words of concern. Words mean nothing as they will not pay the mortgage at the end of the month.

Actions by Government Deputies this evening will say it all. If they vote against the Bill, they will choose once again to kick this can to October and probably beyond that. I sense from the Minister's speech that he is pulling back and no major action will be taken.

9 o’clock

My colleagues across the House have a chance tonight to tell the banking system, once and for all, that this democratically elected Dáil Éireann is in charge and not some sort of unelected group, be it in Frankfurt or Dame Street.

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