Robert Dowds (Dublin Mid West, Labour)
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Question 36: To ask the Minister for Finance the steps he took to persuade Allied Irish Bank to pass on the recent interest rate change to its mortgage customers; and if he will make a statement on the matter. [38590/11]

Michael Noonan (Limerick City, Fine Gael)
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On Thursday 3 November 2011, the Governing council of the ECB reduced the interest rate of main refinancing operations of the Eurosystem by 25 basis points to 1.25%, with effect from 9 November 2011. On Wednesday 9th November, The Taoiseach, the Tánaiste, the Minister for Public Expenditure & Reform and I met with the Chairman of AIB to discuss a number of matters including SME lending and SVR mortgage rates. The meeting had been scheduled prior to the interest rate cut. At that meeting, the Chairman of AIB was asked if he intended to pass on the ECB rate cut. The Chairman indicated that at that time the bank was not inclined to do so at which point it was requested of him that the bank reconsider its position in light of the current circumstances faced by mortgage holders across the country.

The following evening, on 10 November, the Board of the bank announced that it had decided to pass on the interest rate decrease to customers.