Shane Ross (Independent)

With AIB having cut its rate by a smaller amount, the rate difference between the institutions is now so small that inertia exists, and people have no incentive to switch to other institutions. The banks know this. I am convinced that, as Senator O'Toole said, there is a cartel operating, that telephone calls are being made between banks, and that they agree on rates and on what action they should take. At this stage they hardly need to make telephone calls, because they can move in tandem. They understand each other and their language so well. One day it is one person's turn, another day it is another's. This crucifies the consumer, who is helpless in the situation, as illustrated in the tale Senator O'Toole told about his grandmother. The most vulnerable people are the people who suffer the most in this situation.

Though bankers try to confuse us, banking is not a sophisticated business. It is a matter of merely making a margin. The banks are not passing on the savings. They make most of their money on deposits, paying 0.1% interest while they themselves obtain 1.99% on those deposits. There can be no easier business. It is not very sophisticated. They then confuse us with jargon, with words like competency and capacity, and make it all sound difficult, which it is not.

Savers face extraordinary difficulties. In the other House, Deputy Richard Bruton articulately pointed out one aspect of the fall in ECB rates which has not been accentuated. The rate cut should have been more than 0.5%. The cuts made by the Irish banking institutions should have been greater, because the rate cuts have not been passed on in full for several years. Far from it being difficult for the institutions when ECB rate cuts are made, they are making money from them. They have been widening their margins on mortgages and lending during this period.

We should not forget credit cards. This is the greatest scandal of all. The credit card rates have not been cut and remain at 17% or 18%.