Helen McEntee (Meath East, Fine Gael) | Oireachtas source

There is probably a consensus in the House that the banks played a significant role in the collapse of the Irish economy and subsequent problems with which we are still trying to deal. Mortgage distress and arrears comprise a major problem. There may be a view, one that might not be shared by everyone in the Chamber, to the effect that it was a deeply cynical and political culture that allowed and encouraged the kind of banking behaviour that left this country where it was. We are all anxious that, as a political system, we provide comfort, hope and, most of all, solutions to the families and individuals who were the victims of the boom and bust.

To touch on my colleagues' sentiments, while I believe in the spirit of the Bill, it is not the answer in its current format. The Bill attempts to force variable rates down closer to the European average. We all want to see that happen, but it is a quick fix and a populist option. Just because something is popular does not make it the best option for the customer in the long run. Rates are falling, albeit not as quickly as we would like. That declining trend needs to continue and we need to resist the quick fix option while continuing to encourage competition, which Deputy Farrell, now the Acting Chairman, rightly stated was moving slowly. Competition between banks through greater choice is the best way forward and will force rates down if we can accelerate it.

The Minister, Deputy Noonan, has outlined the concern that the legislation may be unconstitutional. As Deputy Thomas Byrne pointed out, many commentators, be it for their own interests or otherwise, are claiming that the Bill's measures would eliminate the prospect of new entrants into the market, stymie competition and not serve customers in the long run. Coupled with the Central Bank's statement that it will not use the powers conferred upon it by the legislation if passed, where does that leave us? It is something of a political row at the moment, but once the bun fight is over, might we take the Bill to the committee and return to our commonly held principle, that is, to ensure that the people find a solution to their problems, not just in the short term, but in the long term, and that we tease out the challenges? Above all, consultation, collaboration and engagement with the Central Bank are a much better option and bring about better legislation.

I will be brief, as I do not have much time. Yesterday, the Minister, Deputy Noonan, was described at a committee by an unelected witness who was invited to appear before it to discuss mortgage issues as a lover of vulture funds. I am appalled by that remark about a man who provided calm, reassuring and statesmanlike leadership while dragging this country out of the mess in which we found ourselves. The committee and the House should record their disregard for the remark made by that individual.

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