Feargal Quinn (Independent) | Oireachtas source

No, he did not. He was careful about the way he worded it. We have seen the Minister of State in the House on several occasions recently. On this occasion he is wearing a particular hat.

I welcome this Bill, which aims to give more protection to individuals and small and medium-sized enterprises.There is a loophole whereby certain loans that are bought by third parties may not be covered by current legislation. The Minister of State explained that very clearly. The original Bill was extensive as it was intended that it would apply to all credit agreements, including where an SME entered into a loan with an unregulated lender. However, the amendments of 27 May have the effect that loans originally entered into between SMEs and unregulated lenders are not covered. The provisions will only apply to regulated financial service providers. I understand that the purpose of the Bill was to cover loans subsequently acquired by an unregulated entity but perhaps we can find a middle ground in order to offer some protection to SMEs and other customers. I would appreciate it if the Minister of State could comment on that issue. People may face an increased risk of losing their family homes if an unregulated firm holds their mortgage. I am aware that there was discussion about the possibility that mortgages may still be a grey zone. Perhaps the Minister of State can clear up any misunderstanding that may exist in this regard. It would be useful to have clarity on how the so-called vulture funds will be regulated in respect of mortgages.

I recently drafted a Bill that would empower the Central Bank to force banks to reduce variable mortgage interest rates. The Minister for Finance is aware of the bad behaviour and profiteering of banks in this respect. While the Minister for Finance has done some work in this area, KBC Bank, Bank of Ireland and Ulster Bank ruled out the possibility that they would cut their variable mortgage rates. A recent article in The Irish Timesreported: "The Minister reminded the banks that Senator Feargal Quinn’s bill to give certain powers to the Central Bank to fix interest rates has been published in the Seanad, where the Government does not have a majority." Where does the Minister of State stand on this issue and how does the Government intend to deal with financial institutions which do not pass on interest rate cuts to customers?

The ultimate purpose of this Bill is to give people access to credit and to protect borrowers. One way that SMEs and individuals can get easy access to credit is by releasing some of the cash locked up in their pensions. The Minister for Finance introduced a progressive measure which allowed people to access some of the cash locked up in their additional voluntary contributions for a three year period from 2013. The scheme expires in less than a year, however. The access to cash changed people's lives and it provided crucial cash flow for businesses. By September of last year, more than 12,000 people had availed of the scheme, more than €90 million had been released and €36 million had been paid in taxes. It was a win-win situation for Government and borrowers alike. However, I was disappointed to learn that the Minister has no plans to extend the scheme even though it has been a massive success with significant take-up. We have to treat people as adults. The banks are still reluctant to offer loans, while people are unable to access money locked up in their pension account to put their children through education or their businesses back on track. Will the Government consider extending this very worthwhile scheme in the next budget? If people knew they could access part of their pension funds for the rainy day, it would encourage them to invest in their pensions. This has been done successfully in Britain and the ability to access pension funds may have been vital for more than 12,000 people in Ireland. Anecdotal evidence indicates that the scheme has changed lives.

I hope the Minister of State will agree to the amendments that can improve this Bill. I am confident that he has listened carefully to our arguments. Senator Darragh O'Brien indicated that he intends to table a number of amendments. I like to believe this House will be able to improve the Bill.