Enda Kenny (Mayo, Fine Gael)
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On Monday last, the Permanent TSB announced an increase in its interest rates for standard variable rate mortgages, which will result in €42 million being taken from its mortgage payers. The clear indication is that other banks intend to follow suit, which would mean the removal of a further €300 million from the pockets of mortgage holders, of whom up to 350,000 may be affected. As the Taoiseach is aware, banks always have had a duty of care. However, although there have been many instances of people being offered loans amounting to five, six or ten times their salary or of people being approved for loans for which they never applied, there has been no concession in respect of debt forgiveness by the banks, which knew what they were doing. While the Government has given the banks a guarantee, has established NAMA and engaged in recapitalisation, the end result is further pressure on up to 350,000 mortgage holders. What has the Government done to suggest to banks that there is another way and that they do not need to impose interest rate increases on standard variable mortgages held by hard-pressed people? What has the Government done to prevent further mortgage increases taking place?

Brian Cowen (Laois-Offaly, Fianna Fail)
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The Minister for Finance outlined the position on this matter in the House last week when he took the Order of Business. It is important to note that the question of funding for the cost of finance into our banking system is a matter that is of clear concern to the Government. It has been following policies that have ensured that the cost of money and terms used by the Government or available to the banking system is in line with what bond markets are paying. We have not been at the higher end of that scale for some time because of the decisions the Government has been taking.

On this issue, codes of conduct are in place in respect of mortgage arrears for those who have problems paying their mortgages. The Government will examine further measures in addition to what it already has decided. The Minister mentioned initiatives in the budget regarding the extension of the mortgage interest subsidy to 2015 for those who require it, namely, those who bought since 2004 when the price of housing was at its higher end. All those measures are in place to assist people in this way and to ensure they receive fair play and engage with the banks in trying to reschedule their commitments.

Enda Kenny (Mayo, Fine Gael)
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The Government appointed public interest directors to serve on the boards of banks. Is it in the public interest that at this time of economic difficulty, mortgage interest rates should rise, having been driven up by the banks that have been given a guarantee, a recapitalisation and NAMA? As the Taoiseach is aware, the banks' cost structures have not been kept down in line with their European counterparts. I understand that if Allied Irish Banks and Bank of Ireland were to reduce their cost bases to levels comparable to Lloyds or Banco Santander they would save €1.3 billion, which is more than three times the amount they expect to take from mortgage payers. That cost base structure could be reduced by considering private dining rooms, private art galleries, limousines and all of the other excesses that banks and bank boards have put together over the years. Were the banks to reduce their cost structures to European levels, there would not be the necessity to have an increase in mortgage interest. Prior to the banks ever contemplating such an increase, will the Taoiseach - as the Government is the largest shareholder in the banks with public interest directors on the boards - see to it that the Minister for Finance calls in the banks and demands to see their plans for cost structure reduction to bring them into line with European banks and create savings of more than €1 billion? This would also mean there would be no necessity to impose further mortgage increases on 350,000 mortgage payers, 27 of whom came to my office yesterday.

This has gone beyond a joke. The commercial reality is that the dogs on the street know the banks will increase variable mortgage rates. The Government is the biggest shareholder and has provided NAMA, a guarantee and recapitalisation and as such can tell the banks it wants to see their plans for cost structure reduction. Will the Taoiseach give the House a guarantee that the Minister for Finance will call in the banks and demand to see their plans for cost structure reduction prior to them ever contemplating imposing further mortgage increases on 350,000 mortgage holders?

Brian Cowen (Laois-Offaly, Fianna Fail)
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The levels of mortgage interest rates at any given time reflect a broad range of factors, including ECB base rates, deposit rates, market funding costs, the competitive environment and an institution's overall funding. I do not know what level of retail outlets the Deputy wishes to see closed to make up some of the cost savings he claims he can make in banking services in this country. Mortgage rates are at an historic low and whatever trends there may be in the future, the important thing is to try to help people who have difficulties with their mortgages. As I stated, initiatives have been taken by the Government and by an interdepartmental group working on the issue and the Minister for Finance will consider these in due course. We consider all of these issues in a way to be helpful to those with problems but, at the same time, we must ensure that we have a competitive banking system here.

Eamon Gilmore (Dún Laoghaire, Labour)
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Ever since people started to lose their jobs in the economic downturn and the level of unemployment started to rise dramatically, the Labour Party has been arguing that the Government needs to provide additional places in higher and further education to meet the needs of those who lose their jobs. We tabled a Private Members' motion on the issue in May 2008, and others in October 2008, March 2009 and June 2009. We published a document on it in April 2009 and it was a major element in our pre-budget submission. The argument is that people who lose their jobs ought to be provided with educational opportunities rather than simply being on the dole, as they wish themselves.

The figures published by the CAO yesterday on the numbers of people applying for admission to third level colleges are clear - every place has two applicants. The Government made a number of announcements over the course of the past year but the numbers involved are very small. The Government has not provided sufficient places in higher and further education to meet the need and demand that exists at present. If the Government does not do so between now and September, people who have lost their jobs who wish to return to education and training will be denied their place and will have to stay on the dole or the young people who are today preparing for their leaving certificate examination will be denied the place in third level or further education that they had hoped to get because the points for entry will have increased.

The good news from yesterday's CAO figures is that there are so many people who want to enter higher education. The bad news is that the places are not there for them. Will the Government make additional places available in higher and further education so that all of those people applying for places will be accommodated in September; that the points for the courses that the young people sitting the leaving certificate examination hope to enter will not increase as a result of increased demand and that they will get the places they hope for; and that there will be places for those who have lost their jobs and who want to improve their life-chances and skills to be in a better position to benefit from recovery, whenever it comes?

Brian Cowen (Laois-Offaly, Fianna Fail)
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The Minister for Education and Science will continue to work through the Higher Education Authority to see in what way he can monitor demand and identify opportunities to maximise the use of existing and available resources in responding to growing demand. The number of on-line applications for 2010 is 71,232. This means the current ratio of applicants to places is 1.6:1 rather than the ratio of 2:1 which was mentioned. At any rate, in any given year the eventual number of entrants to higher education will be considerably less than the number of initial applicants, perhaps due to applicants not meeting academic entry requirements for their courses of choice, leaving certificate students deciding to repeat, applicants deciding to defer places or taking places in Northern Ireland or other parts of the UK, applicants entering post-leaving certificate or apprenticeship programmes or simply changing their minds about going to the college. The Minister will continue to see in what way he can assist with the available resources to maximise the places available.

Eamon Gilmore (Dún Laoghaire, Labour)
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That does not really tell us anything. As a result of the downturn in construction, apprenticeship opportunities have greatly diminished. This is one of the reasons for the increase in the numbers applying through the CAO system. As a result of the fact that people have lost their jobs, there is an increase in the number of adult or mature students applying to enter higher education colleges. This is quite understandable and it is very good that they improve their educational opportunities. With more applicants, the number of points required will increase for those sitting the leaving certificate in June.

People are now in the second half of the second year preparing for their leaving certificates. They had a reasonable expectation that a course might require 400 points but with more applicants it might require 450 points. As a result, many young people will be denied the course they want. People who have lost their jobs will also be denied an opportunity as some of those trying to enter a course will not do so and will have to remain on the dole. The solution, which it is possible to put in place by September, is to make arrangements with the higher education institutions, colleges of further education and the Higher Education Authority to provide additional places. This is about places and numbers. In this country we have empty buildings that will be going into NAMA.

Séamus Kirk (Louth, Ceann Comhairle)
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The Deputy must ask a question.

Eamon Gilmore (Dún Laoghaire, Labour)
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They could be put to use. People are available to provide tutoring and education. This is an investment in recovery. To avoid the glut we will have in September, with people not being able to get places, more places should be provided.

It is a matter of planning and doing the right thing. It is not a case of letting it all roll on until next September and seeing how many fail to make the grade. We now know there are far more applicants than places and I am simply suggesting that we have an opportunity between now and September to increase the number of places and ensure those who want to benefit from an education can do so. That would be a good use of public moneys and an investment in our future in terms of helping our economic and social recovery.

Brian Cowen (Laois-Offaly, Fianna Fail)
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The higher education sector recognises and shares a commitment to the need to maximise available resources. This year's recurrent and capital spend on higher education is more than €2 billion. I am simply making the point that the number of applications made at this point does not necessarily reflect the number of people who will be seeking places. However, I acknowledge the Deputy's assertion that the issue concerns how we can maximise available resources, achieve economies and work with the Higher Education Authority.

I welcome the commitment that has been given by all the institutions to work together in finding a way to accommodate the growing demand. A timely exercise is also being conducted under the chairmanship of Dr. Colin Hunt on a national strategy for higher education, in which regard a report should issue in spring. This exercise will help us to plan for higher demand on foot of the increase from 12% to 14% in the proportion of mature student applications. This is perhaps a reflection of the limited number of job opportunities and the desire of people to upskill. I welcome that demand for higher education places but we have to work within the budgetary parameters. The budgets are substantial and there is room to accommodate this increased demand by means of better co-operation between institutions. This work is under way as we speak under the auspices of the Higher Education Authority.