Michael McGrath (Cork South Central, Fianna Fail) | Oireachtas source

There have been new initiatives for new customers but the progress for existing standard variable rate mortgage customers has been extremely limited or non-existent in some cases. We can consider the rates at which banks can currently access funds. In October, Bank of Ireland raised five-year money at just over 0.7% and AIB can raise money at similar rates. The Bank of Ireland standard variable rate is six times the rate at which that bank can raise five-year money on the markets, which is outrageous. It is simply unjustifiable.

I would be the first to acknowledge that banks must make a margin and profit, so I have no difficulty with that. Existing standard variable rate customers are being screwed by the Irish banks and nobody is doing anything about it. That is unacceptable. Many people are not in a position to switch as they are trapped for a variety of reasons relating to their own financial circumstances. It is not good enough. The Minister started the process in May last year but he did not see it through. He made the threat of imposing a levy or legislation but that has not come about.

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