Michael Noonan (Limerick City, Fine Gael) | Oireachtas source

I agree with some of the views expressed by the Deputy. When I entered office in March 2011, the banks were insolvent. Anglo Irish Bank was gone out of business completely and Allied Irish Banks, Bank of Ireland and Permanent TSB were insolvent. After three weeks in office, in order to try to make them solvent, I had to recapitalise them. That was on the last day of March 2011. The banks were severely damaged institutions and had great difficulties with their customers. We have been working our way through this ever since. We are now in a position in which we have viable banks trading again and providing the kinds of credit lines we need to keep an economy growing at a rate of 5%. Mortgage interest and mortgage provision are part of that. People need houses and have to have mortgages to purchase them. The interest rates are higher than in the rest of Europe. It is arguable what the margin actually is, but much of the additional margin is due to the first statement of the Deputy, the fact that there are so many mortgages in arrears. The banks have to cover the mortgage book. However, we are working our way through it and circumstances are improving on a monthly basis. I hope they continue to improve.

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