Finian McGrath (Dublin North Central, Independent)
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Question 72: To ask the Minister for Finance if he will review a matter (details supplied) regarding variable interest rates. [15408/12]

Joanna Tuffy (Dublin Mid West, Labour)
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Question 89: To ask the Minister for Finance his views regarding the high interest charges on variable rate mortgages being charged by Permanent TSB to customers struggling to make their mortgage repayments every month and who cannot move their mortgage to another banking institution because they are in negative equity; and if he will make a statement on the matter. [15702/12]

Michael Noonan (Limerick City, Fine Gael)
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I propose to take Questions Nos. 72 and 89 together.

The lending institutions in Ireland, including those in which the State has a significant shareholding, are independent commercial entities.

Ultimately the pricing of financial products, including standard variable mortgage interest rates, is a commercial decision for the management team and board of each lending institution, having due regard to their customers and the impact on profitability, particularly where the cost of funding to each lending institution, including deposit pricing, is under pressure.

The Government is very conscious of the difficulties facing mortgage customers in the current economic climate However, neither the Central Bank nor I have any responsibility for any variation in the variable mortgage interest rates charged by Permanent TSB. The Deputy Governor of the Central Bank has stated to the Government that, within its existing powers and through the use of suasion, the Central Bank will engage with specific lenders which appear to have standard variable rates set disproportionate to their cost of funds.

Permanent TSB has stated publically that it is currently engaged in detailed discussions on its future strategy which it hopes will enable it to take action, amongst other things, to reduce variable rates for mortgage customers over time. The Government will continue to work with Permanent TSB on the development of its future strategy by the end of April 2012 as agreed with our external partners in the latest Memorandum of Understanding dated 10 February 2012.