Darragh O'Brien (Fianna Fail) | Oireachtas source

The reason I give it a guarded welcome is the bank needs to act further. Yesterday, it raised ¤1 billion for residential mortgages at an interest rate of 3.2%. Senator Gilroy is known as the finance guru in the House and he might understand that what this represents is effectively a mark-up and margin to the bank of more than 50% on what it charges its variable rate customers. This is the bank which arbitrarily raised its variable rate interest rates by 0.5%, as did its subsidiary, ICS, which now has a rate of 4.5%.

The bank is raising money for which I am glad but at 3.2% for three year money and still charges its variable rate customers 4.5%. That is a 50% mark-up at a time when one in five mortgages - it is closer to one in four - are in arrears. The financial situation is getting worse by the day but these banks, such as Bank of Ireland and AIB, are crucifying their variable rate customers in order to pay for the losses that they are incurring on tracker rate mortgages.

A fortnight ago the Leader gave an update on the mortgage resolution measures that were supposed to be submitted by the banks to the Central Bank by 30 September. I understood from his answer that the measures have been submitted. Can we get an update on when these banks, which are apparently two pillar banks, will move to relieve the distress in the mortgage market? When will they produce innovative products and solutions for people? I do not mean the Personal Insolvency Bill, which is the equivalent of the nuclear button where one must give up everything. The Bill will not be a game changer because it is just part of the solution.

Yesterday Bank of Ireland raised ¤1 billion at 3.2%, which is good news, yet it charges variable rate customers a rate of 4.5% when there has been no increase in the ECB base rate. A mark-up of 50% is unacceptable. Perhaps Senator Gilroy will telephone Mr. Boucher because I am sure that Mr. Boucher has a great deal of regard for his financial knowledge. I ask the Leader, on foot of the good news given by the Bank of Ireland yesterday that it has raised money, to put pressure on it and seek the reversal of the 0.5% rate increase that was arbitrarily hoisted on customers over eight weeks ago. People are being crucified by it.