Tánaiste Eamon Gilmore said the Government would call in the banks again if they failed to pass on the cut in interest rates today from the governing council of the European Central Bank.
Mr Gilmore made his comments as he and Sinn Féin finance spokesman Pearse Doherty clashed in the Dáil over the Government’s actions to get banks to pass on ECB rates.
Mr Doherty raised the issue amid expectations of another cut in rates from the governing council of the ECB meeting today.
He highlighted the refusal of the Bank of Ireland and Ulster to pass on the cuts.
Hitting out at the Government he said they had given a “pathetic display” of “jumping up and down” about the issue. "Ultimately after some bluster ye simply did nothing."
Mr Gilmore rejected his claim the Government had abandoned those with mortgage difficulties and highlighted a number of budget measures including increasing mortgage interest relief had been increased for those who bought in the boom.
Acknowledging that two of the banks failed to pass on the interest rate reduction, Mr Gilmore said “I would hope on this occasion that they will do so.
“I understand that one of those financial institutions is today launching a new mortgage product for people having difficulties with their mortgage.”
He insisted the Government had taken action for people with mortgage difficulties and “are continuing to take action”.
Mr Doherty said Mr Gilmore might hope that banks would pass on the interest rate but “there are thousands of people who are hoping that this Government will do something.
It is in your power not to be telling the banks that you hope they’ll pass it on but to actually act decisively”.
“I want you to say to mortgage holders that you will bring in legislation to force the bank to pass on the ECB interest rate cut”.
He told Mr Gilmore: “You are in power. You have the power to cut social welfare rates, child benefit, one-parent family’s rate. You also have the power to instruct the banks to pass on this rate. So act on behalf of the people’s interests.”
But Mr Gilmore said this was the first Government to bring in the banks and addressed “face up with the banks the issue of passing on the interest rate reductions”.
These were the same banks that Mr Doherty “was happy to guarantee three years ago”, the Tánaiste added.
Highlighting the actions the coalition had taken to deal with mortgage distress he said “this Government will act decisively, forcefully and effectively with the banks and anybody else in the interests of those who hold mortgages and are having difficulty repaying them”.