Colm Burke (Cork North Central, Fine Gael) | Oireachtas source

I want to raise the issue of the penalty interest rate which is going to be imposed on solicitors’ practices in regard to client accounts. As the Taoiseach is aware, solicitors protect the moneys from house purchases and of people who are selling their houses. Now, however, under the new proposal from the banks, AIB's intends to charge 0.5% on client current accounts where they exceed a certain amount and, likewise, Bank of Ireland intends to impose a penalty charge of 0.65%. This relates to current accounts and it applies once there is over €1 million in an account. If one is dealing with three or four transactions at any one time, there will be well over €1 million in an account. They are now going to be penalised and this is going to be added to the cost of house purchases in the long term. I ask what action the Government is going to take on this matter.

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