Jan O'Sullivan (Limerick City, Labour) | Oireachtas source

The Labour Party is supporting the Fianna Fáil motion in general but we believe the actions of these now profitable banks needs to be recognised and punished, which the Central Bank will do in part. However, because of the historic losses of the banks, many of them will not pay corporation tax for decades. It was for this reason the banking levy was introduced in 2014 at a rate of €150 million per year. Allied Irish Banks, AIB, and Bank of Ireland will likely record profits of more than €3 billion in 2017. Increasing the total levy to €300 million would be a clear sign that this behaviour will not be tolerated.

The Labour Party is also concerned that AIB may have lowballed the number of those impacted, coincidentally in advance of its flotation. We need to know the total number of mortgage accounts impacted. It is clear that the tracker mortgage scandal has caused huge distress to thousands of families across Ireland, with 13,000 customers already identified and that number expected to increase. A total of 102 houses and apartments were repossessed as a fall-out from this scandal, 23 of which were family homes and 79 of which were buy-to-let properties. Simply put, 23 families were put out of their homes as a result of what can be only reasonably be described as malpractice on the part of the banks.

As the Central Bank has made clear, only 25% of those affected have received redress or compensation. The behaviour of Irish banks shows that no significant cultural change has occurred over the past decade. Despite major reforms, Irish banks still do not fear the law or the regulator and they remain contemptuous of customers' rights. While the Minister has spoken to the banks this week, it is simply not good enough that the tracker mortgage scandal is still unresolved. The belief that these type of chats will resolve the issue is misplaced. The Minister has said that he is disappointed and that the banks have let themselves down. Let us be clear - these are not naughty school children, rather they are major businesses that have removed contractual rights from their customers. Some of these institutions are in majority State ownership. This is not acceptable behaviour.

Today, all five banks made statements unreservedly apologising to their customers who have been adversely and shamefully impacted by the tracker mortgage scandal but it has taken years to get to this point. We now need to see full transparency on the part of the banks concerned in regard to the number of customers affected in each case and clear explanations about what happened in those cases and, critically, who was responsible. We also need each institution to provide a schedule as to when customers will be compensated and the specific individual issues resolved. This should be completed by Christmas at the latest. To be clear, everyone affected should have received their compensation by Christmas. Full transparency is essential.

It is clear that this behaviour has been endemic across a number of banks but we have yet to be told why it happened. To the outside observer, the pattern of the scandal would indicate an organised conspiracy to remove contractual obligations from customers. In effect, many people were forced to pay more than they should have and at least 23 families have lost their homes. This is tantamount to an organised cartel among most, if not all, of the banks. Competition authorities in Ireland and Europe need to address this matter robustly and to gather the necessary information.

We are told that the Central Bank is meeting the Garda. If this is so, it can only be because someone suspects that a crime, or crimes, have been committed. If so, it is the first duty of the Central Bank to do all that it can and should do to assist the Garda in carrying out a comprehensive criminal investigation so that any and every wrongdoer is brought to justice. It is our judgment that the banks, which have benefitted from the extraordinary support and benevolence of the taxpayers of this State, have once again perpetrated a gross act of betrayal on the Irish people. As has been said, this is not the first time this House has debated this issue. While many Members of the House have been raising it for many years, it was the bravery of particular mortgage holders who brought it to public attention. The distress they faced, and their bravery in fighting for their rights, must be recognised by this House tonight. It should be a marker in the sand that this type of scandal can never happen again.

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