Darragh O'Brien (Fianna Fail) | Oireachtas source

It is safe to say this has probably been one of the best weeks for the two Irish pillar banks since this Government took over. First, the Government bottled it by deciding to abstain from a vote on directors' and executives' remuneration in Bank of Ireland, an action I am sure the Leader will admit has at best disappointed the public and at worst angered it because it shows the Government has no opinion whatsoever on the fact that executives are being paid telephone number-style remuneration packages with a bank that last year lost more than €2 billion. That is incredible. In addition, yesterday evening we learned that another State bank, AIB, which is 99% owned by the taxpayer, is to increase its variable mortgage interest rate by 0.4%, resulting in an increase of approximately €20 per €100,000 per month for variable rate mortgage-holders in AIB, EBS and Haven Mortgages, which is owned by AIB.

What I cannot understand, what the general public cannot understand, is how it makes any type of sense for the Government to permit AIB to allow an increase in the variable mortgage interest rate when there are tens of thousands of people either in mortgage arrears or about to fall over the arrears cliff. Will the Leader explain to me the rationale for AIB's rate increase? Does the Government agree it is right and proper for AIB to increase its mortgage interest rate by 0.4%? I ask the Leader to answer the question in the context of reports that it is more than likely that the ECB is to reduce its base lending rate by 0.25%. In a situation where there may be an ECB base rate of 0.5% AIB, in advance of that move, actually increases its variable rate by 0.4%. What is the Government doing for mortgage holders and how can mortgage holders be expected to understand the rationale whereby a State-owned bank is allowed to increase its variable rate by 0.4%? This week has been a disaster for the Irish consumer as far as Irish banks are concerned.

I wish to propose an amendment to today's Order of Business calling on the Minister for Finance, Deputy Noonan, to come to this House for a half an hour to outline to me and my colleagues his view on AIB's decision to increase its variable mortgage interest rate by 0.4% when it looks like the ECB will reduce its base rate in the coming days. Where is the fairness and equity in that?

I welcomed the Leader's comment yesterday on the pay packages of the executives in Bank of Ireland. He said he did not agree with those packages, which is fine, but the Government did nothing about it. What is the Government proposing to do about the AIB's interest rate increase? Is it going to drag representatives of the bank into Government Buildings or the Department of Finance? I would like to ask the Minister for Finance, if he comes to the House today, what is the view of our public interest directors in AIB on the interest rate increase. I will table an amendment to the Order of Business to request that the Minister for Finance comes to this House for a half an hour today to discuss the variable rate increase announced by AIB.