Results 14,701-14,720 of 27,945 for speaker:Michael McGrath

Joint Oireachtas Committee on Finance, Public Expenditure and Reform, and Taoiseach: Central Bank (Variable Rate Mortgages) Bill 2016: Discussion (20 Oct 2016)

Michael McGrath: It will cover regulated lenders.

Joint Oireachtas Committee on Finance, Public Expenditure and Reform, and Taoiseach: Central Bank (Variable Rate Mortgages) Bill 2016: Discussion (20 Oct 2016)

Michael McGrath: A lender must be regulated if it wishes to lend. Regulated entities that are in the mortgage market will be contemplated by the Bill.

Joint Oireachtas Committee on Finance, Public Expenditure and Reform, and Taoiseach: Central Bank (Variable Rate Mortgages) Bill 2016: Discussion (20 Oct 2016)

Michael McGrath: Section 5 sets out a number of intervention options that are open to the Central Bank. It sets out four different options in terms of what the bank could do if it arrived at the conclusion that there has been a market failure in the case of one lender or a group of lenders or in the market generally. In such circumstances, it could intervene and set a cap on a particular rate. It could...

Joint Oireachtas Committee on Finance, Public Expenditure and Reform, and Taoiseach: Central Bank (Variable Rate Mortgages) Bill 2016: Discussion (20 Oct 2016)

Michael McGrath: The Senator's argument is the one put forward by the Minister - and to which the Central Bank referred - that this provision could be a deterrent to new entrants to the market. In recent years, Pepper has started lending some mortgages in the market. I understand Frank mortgages has also applied for permission to lend, although I do not believe the application has been fully processed in...

Joint Oireachtas Committee on Finance, Public Expenditure and Reform, and Taoiseach: Central Bank (Variable Rate Mortgages) Bill 2016: Discussion (20 Oct 2016)

Michael McGrath: No, I do not accept that. The legislation places a cap on mortgage interest rates. The Senator is arguing that because of the relationship with the average rate, it may end up pushing rates up.

Joint Oireachtas Committee on Finance, Public Expenditure and Reform, and Taoiseach: Central Bank (Variable Rate Mortgages) Bill 2016: Discussion (20 Oct 2016)

Michael McGrath: The question one must ask is where are the new entrants. This has been spoken about often in recent years.

Joint Oireachtas Committee on Finance, Public Expenditure and Reform, and Taoiseach: Central Bank (Variable Rate Mortgages) Bill 2016: Discussion (20 Oct 2016)

Michael McGrath: No

Joint Oireachtas Committee on Finance, Public Expenditure and Reform, and Taoiseach: Central Bank (Variable Rate Mortgages) Bill 2016: Discussion (20 Oct 2016)

Michael McGrath: That is a very convoluted argument and it is a certain-----

Joint Oireachtas Committee on Finance, Public Expenditure and Reform, and Taoiseach: Central Bank (Variable Rate Mortgages) Bill 2016: Discussion (20 Oct 2016)

Michael McGrath: New entrants to the market will always be welcome and will be able to charge a rate from which they can achieve a fair return. They will be able to charge a rate that is above their cost of funds, taking into account all of the other factors that feed into variable rates. I do not accept the Senator's argument.

Joint Oireachtas Committee on Finance, Public Expenditure and Reform, and Taoiseach: Central Bank (Variable Rate Mortgages) Bill 2016: Discussion (20 Oct 2016)

Michael McGrath: The issue here is that the appeal will be made to the Central Bank and, as such, it will be internal to the Central Bank.

Joint Oireachtas Committee on Finance, Public Expenditure and Reform, and Taoiseach: Central Bank (Variable Rate Mortgages) Bill 2016: Discussion (20 Oct 2016)

Michael McGrath: Yes, appeal mechanisms are not always provided in legislation. For example, the proposal for planning applications involving more than 100 units will now go directly An Bord Pleanála. What appeal mechanism applies in those circumstances? There is none. The Senator raises a point of detail. We will consider amendments if members believe an appeal mechanism would render the...

Joint Oireachtas Committee on Finance, Public Expenditure and Reform, and Taoiseach: Central Bank (Variable Rate Mortgages) Bill 2016: Discussion (20 Oct 2016)

Michael McGrath: This is an important issue. There is a gap in the existing legislation around credit servicing. Many of the vulture funds that bought loan books are not directly regulated in Ireland. However, they must appoint an intermediary, which is regulated, that is to say, a credit servicing firm. Pepper is probably the best-known example. The legislation could only apply to regulated entities...

Joint Oireachtas Committee on Finance, Public Expenditure and Reform, and Taoiseach: Central Bank (Variable Rate Mortgages) Bill 2016: Discussion (20 Oct 2016)

Michael McGrath: It does, because the intermediary is a regulated entity. Therefore, it would come under the legislation. The customer's direct relationship is with the intermediary, even though the intermediary does not own the overall loan. It is only a matter of a short time, I hope, before the Oireachtas will deal with the issue of bringing the owners of loans directly within the ambit of regulation....

Joint Oireachtas Committee on Finance, Public Expenditure and Reform, and Taoiseach: Central Bank (Variable Rate Mortgages) Bill 2016: Discussion (20 Oct 2016)

Michael McGrath: The powers that we are proposing to give to the Central Bank can be applied to the intermediary. The Central Bank does not have a direct relationship with many of those funds, because they are not regulated in Ireland. The Central Bank powers will apply to the intermediary, and that can be of benefit to the consumer. There is a gap, however. It is a gap that can be traced back to last...

Joint Oireachtas Committee on Finance, Public Expenditure and Reform, and Taoiseach: Central Bank (Variable Rate Mortgages) Bill 2016: Discussion (20 Oct 2016)

Michael McGrath: The Central Bank can apply the powers in respect of the intermediary that I hope will be given to it through this Bill. That could have an impact on the rate charged to the customer.

Joint Oireachtas Committee on Finance, Public Expenditure and Reform, and Taoiseach: Central Bank (Variable Rate Mortgages) Bill 2016: Discussion (20 Oct 2016)

Michael McGrath: I would have thought the Minister would have sought the advice of the Attorney General after Second Stage of the Bill was completed in May but it appears this has not happened. As we are not in the business of advancing legislation that is unconstitutional, that issue will need to be clarified. The Bill is with the Parliamentary Counsel so we will get an opinion from that source. The...

Joint Oireachtas Committee on Finance, Public Expenditure and Reform, and Taoiseach: Central Bank (Variable Rate Mortgages) Bill 2016: Discussion (20 Oct 2016)

Michael McGrath: I thank Mr. Burgess, Mr. Goor and Mr. McNally for appearing before the committee today. I thank the campaign group for all the work it has done over the last few years. It started with the Permanent TSB issue and the rates of over 6%, which affected Mr. McNally. I thank Mr. McNally and Mr. Goor for sharing their personal stories. They are representative of many thousands of others who are...

Joint Oireachtas Committee on Finance, Public Expenditure and Reform, and Taoiseach: Central Bank (Variable Rate Mortgages) Bill 2016: Discussion (20 Oct 2016)

Michael McGrath: I apologise, but we have to go and vote in the Dáil.

Written Answers — Department of Finance: Fiscal Compact Treaty (20 Oct 2016)

Michael McGrath: 76. To ask the Minister for Finance if his Department has sought any flexibility from the European Commission in terms of the application of the fiscal rules to capital expenditure; and if he will make a statement on the matter. [31354/16]

Written Answers — Department of Finance: Fiscal Policy (20 Oct 2016)

Michael McGrath: 90. To ask the Minister for Finance the basis of his Department's estimate, as contained in the economic and fiscal outlook accompanying budget 2017, that the euro-sterling exchange rate will be at €1:£0.85 for the 2017 to 2021 period; if he will confirm, for example, the impact on projections for exports, economic growth and employment levels if the exchange rate averaged...