Maurice Cummins (Fine Gael) | Oireachtas source

Senator Mooney spoke about variable mortgage rates. He should not believe everything he reads in the newspapers. It is not good for anyone to believe everything. I take on board what he says about one newspaper claiming credit for AIB reducing its rates, which is a bit far-fetched. In its statement of priorities the Government recognises that promoting and encouraging competition for new entrants into the banking sector is required to put downward pressure on interest rates for variable rate mortgage customers, new and existing. The action taken by the Government to promote competition in the banking sector includes the establishment of the Strategic Banking Corporation of Ireland, SBCI, the credit guarantee scheme and amendment of section 149 of the Consumer Credit Act 1995 to encourage new entrants to the Irish financial sector. The mortgage interest rates that independent financial institutions operating in Ireland charge to customers are determined as a result of a commercial decision by the institutions concerned. The Minister for Finance and the Central Bank do not have a statutory role in respect of the mortgage interest rates charged.

As part of the Central Bank’s work on mortgage arrears, lenders were asked to consider all avenues to help customers in arrears, including interest rate reductions. Regulation of interest rates remains a policy area under review and it has been the subject of correspondence between the Department of Finance and the Central Bank. At a recent meeting between the Minister for Finance and the Governor of the Central Bank, the issue of mortgage interest rates was discussed. The Governor provided an update on ongoing work that he and his officials are carrying out on the issue of standard variable rates charged by lenders. The Governor and the Minister noted that the standard variable rates charged in Ireland are higher than in any other euro area countries and have not fallen in line with the European Central Bank wholesale rates. The Central Bank will continue to research why this is the case and will publish results shortly. The Governor will update the Minister for Finance on progress in due course.

As Senator Paul Coghlan and others stated, the Government will have its own suite of additional measures which will be announced soon. I hope when those measures are announced we can invite the Minister for Finance into the House to explain the position and have the debate on mortgage interest arrears and the banking sector that has been requested numerous times.

Senator Mooney and several others, including Senators Gilroy and Bradford, asked us to remember the approximately 4,000 Irish men who lost their lives in the First World War at Gallipoli. Senator Gilroy also spoke about the fallen of 1916 and recalled the complexity of our history. There is a need for balanced comment on this issue. I am sure we will all remember the Irishmen who died in 1916 and in Gallipoli and elsewhere in the First World War.

Senators Bacik and Mullins welcomed the appointment of the Minister of State at the Department of Justice and Equality, Deputy Aodhán Ó Ríordáin as Minister of State with responsibility for drugs strategy. Members on the other side of the House also asked several times for a designated Minister of State. Everyone will be pleased that this responsibility will rest with Minister of State, Deputy Ó Ríordáin. We will have statements on the drugs strategy with either the Minister for Health, Deputy Varadkar, or the Minister of State, Deputy Ó Ríordáin, when the drugs and alcohol briefs have been newly assigned by the second week in May.Senator Bacik also spoke about the plight of migrants seeking to enter Europe. I am sure that the problems facing so many migrants will be discussed at the EU summit today.

Senator Craughwell welcomed the announcement by the Minister that the Comptroller and Auditor General is to investigate the Siteserv issue. Senator Bradford also commented on that issue. I gave a comprehensive reply on it yesterday. Senator Craughwell also proposed an amendment to the Order of Business calling on the Minister for Education and Skills come to the House today for a debate on the closure of a school in Donegal. I suggest that the Senator table that issue for discussion as a Commencement matter, in respect of which the Minister could come to the House to give a reply.

Senator Naughton welcomed the planning application submitted by Apple in respect of the data centre. There is no doubt but that this is an exciting development for Galway, the west and the country. It is hoped the planning permission will be granted in early course and that this major development will be up and running soon.

Senator Wilson spoke about variable interest mortgage rates, on which issue I have already responded. Senators Coghlan and Hayden also spoke on that issue. The work done by our Oireachtas committees is not often recognised. I take this opportunity to pay tribute to the finance committee, of which Senator Hayden is the Vice Chairman, for its work on that issue. I wish all members of the committee well in their endeavours in terms of their querying the other banks as they appear before it over the coming weeks. The committee will probably have more difficulty with them than they had with the representatives of AIB.

Senator Quinn spoke about encouraging tourism and overcoming local challenges that may arise from time to time. That is an important point. People often object to various aspects of tourism development. It is important from a national point of view that we can overcome these challenges. We have been very successful in terms of our tourism product but we cannot rest on or laurels. We must continue to develop the wonderful tourism product that we have in this country. I note the Senator's point on businesses not being equipped to trade online, on which issue the Minister of State, Deputy Dara Murphy, recently made a statement. There is a need for businesses to get more involved in online trading, particularly in the context of development of their own business.

I do not propose to accept the amendment to the Order of Business as proposed by Senator Craughwell.