Pádraig Mac Lochlainn (Donegal North East, Sinn Fein)
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Question 50: To ask the Minister for Finance the steps he has taken in directing mortgage providers in receipt of State support to cut their costs, over and above existing plans, in a fair manner by a sufficient amount to forgo a 25 basis point increase on their variable rate mortgage. [27661/11]

Michael Noonan (Limerick City, Fine Gael)
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As I have informed this House previously as part of the restructuring and recapitalising plans announced last March as part of the PCAR and PLAR exercise, the banks are engaging in cost cutting plans, which are already underway. The effects of these cost-cutting plans will be to enable costs saving through shared services and economies of scale. They are also expected to bring about cost reductions which will improve operating margins and permit the banks to better absorb funding costs.

The Government remains in consultation with the banks in connection with the more significant parts of these plans.