Róisín Shortall (Dublin North West, Labour)
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Question 160: To ask the Tánaiste and Minister for Enterprise, Trade and Employment if she will intervene to assist former employees of a company; if, to date, redundancy or other payments have been awarded to a person (details supplied) in Dublin 9; and if not, the steps her Department is taking to assist this person and former employees. [46281/08]

Billy Kelleher (Cork North Central, Fianna Fail)
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Payment of statutory redundancy is, in the first instance, a matter for the employer. In relation to the person mentioned by the Deputy, my Department has no record of an application having been made for a rebate in respect of a statutory redundancy payment paid to that person by the employer mentioned. Further, no application has been made either by the individual or the employer for a lump-sum payment from the Social Insurance Fund on the basis of inability to pay or otherwise.

I have no role in relation to direct intervention in the matter of statutory redundancy payments. The choice of mortgage product ultimately rests with the consumer in light of the terms and conditions that their lending institution offers. The decision of borrowers is influenced by factors such as their personal preferences and their own assessment of the relative merits of fixed and variable rate mortgages taking into account the information made available by the Financial Regulator. The Financial Regulator, which has a statutory consumer protection mandate, provides advice to consumers on the advantages and disadvantages of fixed rate mortgages.

As the Deputy will be aware, the cost of a fixed rate mortgage reflects longer-term funding costs for the financial institution which provides it. Therefore, in contrast to tracker and variable rates, the cost neither rises with an increase in the ECB base rate nor falls with a reduction in it. The Financial Regulator has highlighted, in the context of its consumer information role, that for those whose finances may be stretched, such as first-time buyers, fixed rates offer peace of mind. While they may cost more over the longer term they allow the mortgage holder to budget confidently. However, the Financial Regulator also stresses that fixed rate mortgages give less flexibility than variable rates. My Department will monitor the issue raised by the Deputy, in consultation with the Financial Regulator, in relation to credit institutions participating in the Guarantee Scheme, in light of the objectives of the Scheme.