I respect the authenticity and sincerity of Senator Paschal Mooney's call this morning regarding rates of interest being applied by the banks. I think we had a successful day yesterday at the hearings of the Joint Committee on Finance, Public Expenditure and Reform. We are all concerned at the gap between the ECB rates and the standard variable mortgage rates that are applicable. In this regard, I asked Mr. Duffy and his colleagues if they would be open to an independent objective assessment in circumstances where the rate they are applying is inflicting undue hardship on the borrower.

I had in mind an external agency such as the Credit Review Office, which arbitrates on SME loan applications. To be fair, AIB stated it would accept that proposition. It did not think it applied but stated it was trying to engage with everyone. On the number of repossessions, it pointed out that when a notice was served, 50% chose to re-engage. Therefore, it has dropped of all such proceedings. From what it stated yesterday, it is making a fair effort in that regard.

Yesterday, on the matter of repossessions, I also queried the practice in voluntary assisted sales and recommended that where the homeowner surrendered the house and assisted in the disposal process, the bank write off the balance of the debt once the asset had been sold. Again, that was accepted and it was stated this was, or would be, its practice. I know that the Senator meant well and I agree with him, but the bank did point out that there were four component parts to its charge for money and that it was keeping them under review. There is movement and it is downward. The bank did seem to promise or commit, in the short term, perhaps within a few months, to reducing the rate.

Having an external agency to arbitrate could help, especially where a customer is able to show that, in its particular case, the bank is inflicting undue hardship. We need to continue to monitor the position. Next week, representatives of Bank of Ireland and Ulster Bank will be before the finance committee and we will pursue this matter further with them. Things are moving in the right direction. No one wants to see repossessions. As Senator Ivana Bacik said, the Government will have its own suite of measures very quickly.

The Government should be leading on this isue. A national newspaper should not be claiming credit.