Jimmy Harte (Labour)

I fully agree with Senator Mullen's comments relating to a debate on the Seanad. Members on this side of the House share his views, and I am sure all Members will tell him as much privately as well.

With regard to the call for a debate on mortgage interest rates, Senator O'Brien pointed out that current mortgage interest rates are up to 6% while the European interest rate is 1%, so there is a 5% margin on many mortgages. Over the years mortgage companies always said they could only pay their depositors what they charged their borrowers, which meant that if there is a high mortgage interest rate, at least depositors were getting a high return on their deposits. That is not the case now. Senator O'Brien is correct that we should ask the Minister for Finance what can be done for people with mortgages. Extra relief was provided in the budget for people with distressed mortgages or high borrowings over the last four or five years, but there are many people who borrowed money in the last ten years before the bubble burst. They should also be looked after. The main point is, however, that if Permanent TSB is charging borrowers 6% and it is borrowing the money at 1% there is a 5% margin, which is far too big. It is making a profit and that should be passed back to the borrower. Senator O'Brien is correct to seek a debate on the matter and I support him in that.