James Browne (Wexford, Fianna Fail) | Oireachtas source

I welcome the opportunity to speak on the Fianna Fáil Party Bill which aims to reduce standard variable rates on mortgages. The Bill provides an opportunity to give protection to consumer interests, something which has been very much lacking. I commend Deputy Michael McGrath on introducing this intelligent, thought-out and people-centred Bill and, in particular, his tenacity in driving it forward and refusing to give up.

More than 300,000 households and up to 500,000 people will benefit from this legislation if it results in a reduction in standard variable mortgage rates. These are people who are overpaying for their mortgages, the single largest outlay for families. Householders earn an income, pay taxes on it and bring it home to sustain their families. However, they are being ripped off by banks through the interest rates being charged and this practice has been allowed to continue.

The purpose of the Bill is to achieve fairness for families. The same banks that were saved by taxpayers continue to profit off the backs of struggling and working families. They are charging up to six times the cost of funds for their standard variable rates. When people fall into arrears the rates are increased through levies, resulting in the mortgage holder falling further and further behind on their payments. The banks have had time to take action in the interests of consumers but have shown no concern, interest or inclination to do so. The time is up and the House has a duty to step in.

The Oireachtas is meant to act as a buffer and protect citizens against powerful interests. Instead, too often, the Deputies opposite have become sales representatives who seek to justify and explain to people the reasons they have to suck it up.

If passed, this Bill will hang a sword of Damocles over the heads of banks that fail to fulfil their duty to act in the interests of their customers. In particular, it will put a brake on vulture funds which, with house prices increasing, have a perverse incentive to increase interest rates and force defaults in order that they can sell properties and profit from their sale. A quick buck is their aim.

The Government has sought to deny that there is a problem, delay action and discredit the Bill by raising vague constitutional issues and engaging in scaremongering. The Central Bank has stated it does not want the powers provided for in the Bill. It is not for the Central Bank to make such a statement. It has a role in protecting consumer interests.

The Bill is necessary because the market is failing and working families are paying for this failure. It is time the House started to represent the interests of citizens again. I hope this Fianna Fáil Bill aimed at reducing variable mortgage interest rates will start a process of changing the mentality in the House such that it begins again to serve the interests of citizens.

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