Sinn Féin spokesperson on Finance, Pearse Doherty TD, has called out Government Ministers for failing to challenge the banking sector and support hard-pressed citizens as mortgage interest rates and bank profits have soared.
Teachta Doherty said:
“For several months Sinn Féin has been calling for action as households have seen mortgage interest soar while deposit rates for savers have remained stubbornly.
“Since February we have warned that Irish banks could accrue huge profits on the back of rising interest rates as households struggle.
“For months these warnings have fallen on deaf ears.
“In the past week we have heard Government Ministers offer nothing but empty words as Irish banks are on course to record combined profits of €5 billion this year alone.
“In the past year Irish mortgage holders have seen their interest rates soar, with 2 in 5 households set to see their annual mortgage costs rise by €3,000.
“Workers and families who had their mortgages sold to vulture funds are facing rates as high as 10 percent.
“Fine Gael and Minister Simon Harris have no credibility whatsoever.
“This is a party that welcomed the sale of mortgages to vulture funds.
“Fine Gael is a party that, together with Fianna Fáil and the Green Party, reduced the bank levy and allow banks to reduce their corporation tax liability through the use of historic losses.
“This Government has been the ultimate laggard in challenging the banking sector as their profits and net interest income soar at the expense of borrowers and savers.”
Sinn Féin spokesperson on Finance, Pearse Doherty TD, has called on the Central Bank to investigate the latest IT failure by Bank of Ireland.
The Donegal TD has said yesterday’s IT failure will exact lasting reputational damage on the bank and reveals a clear disregard for customer services as its profits soar.
Teachta Doherty said:
“Yesterday’s IT systems failure at Bank of Ireland raises serious questions for the bank and will inflict lasting damage on its reputation.
“This is the latest in a series of IT failures at Bank of Ireland that have impacted its customers.
“The Central Bank should investigate this latest failure without delay.
“Citizens and businesses are reliant on the proper functioning of technology systems to deliver financial services.
“What is required is a full investigation into what has taken place, and a wider review of the IT systems that our banking sector operates, and which our communities and businesses rely on.
“Other questions need to be answered – including whether Bank of Ireland made contact with An Garda Síochána to deploy resources to local ATMs, and if there was any awareness at government level over these deployments.
“Customers have a right to expect high quality services – that expectation has been broken in this latest debacle.
“This failure underlines, yet again, the relegation of consumer interests to the service of corporate greed and profit.
“It will be lost on no one that Bank of Ireland recorded profits in excess of €1 billion in the first half of this year – up 192 percent.
“A bank that recently announced that it would return €450 million to the pockets of shareholders through dividends and share buybacks.
“At the same time, this shocking failure has led to the deployment of Gardaí to ATMs with the potential to adversely impact customers who could now be overdrawn.
“This is a bank that has removed ATMs and branches from local communities, forcing many to online banking while clearly failing to invest in its own IT infrastructure.
“Sinn Féin, citizens and customers will rightly ask why these exceptional profits are not being invested in areas that improve customer services.
“This is a bank that this government allows to reduce the corporation tax it pays to nil by carrying forward historic losses.
“These types of IT failures have become a regular occurrence – it is not acceptable.
“This latest debacle, which will inflict lasting reputational damage on Bank of Ireland, raises serious questions over its investment in its own systems and customer service at a time when its profit margins have soared.”
Sinn Féin spokesperson on Finance, Pearse Doherty TD, has called for the introduction of temporary and targeted mortgage interest relief to support households as interest rates continue to rise.
Speaking today, Teachta Doherty said:
“Workers and families continue to see their mortgage interest costs rise.
“This is a massive income shock for households in the grip of a wider cost of living crisis.
“This is despite retail banks recording a massive growth in their profits and net interest income – largely due to interest rate rises by the ECB rather than any improved performance or efficiencies.
“For months Sinn Féin have called for the introduction of temporary and targeted mortgage interest relief to support struggling households.
“Yesterday the Central Bank confirmed that the average interest rate on new mortgage agreements has risen above four percent and the European average.
“The average Irish interest rate on outstanding mortgages was 52 percent higher than the European average.
“The Central Bank recently estimated that one in five households will see their annual mortgage costs spiral by more than €5,700 as a result of these rate hikes.
“With two in five seeing their annual mortgage costs rise by more than €3,000.
“Households who had their mortgages sold off to vulture funds without their consent, but with the support of Fine Gael and Fianna Fáil, are now facing interest rates as high as 10 percent.
“It is clear that action is needed.
“Despite the false promises of Taoiseach Leo Varadkar who supported these loan sales, these borrowers have no option to fix and are being hit with interest rates much higher than those being charged by mainstream banks.
“The Minister for Finance should convene a meeting with the Central Bank and retail banks and chart a way forward.”
Sinn Féin spokesperson on Finance, Pearse Doherty, has told Irish communities in Australia that the party is committed to ensuring Ireland is a place of thriving opportunity for emigrants who choose to return home.
He was speaking at an event in Sydney yesterday evening (Wednesday), launching the new community group ‘Australian Friends of Irish Unity’.
Pearse Doherty said:
“The Irish community in Australia is strong and vibrant, brimming with the energy and optimism of the ‘can do’ attitude that defines our people.
“We are proud of the contribution that the Irish have made to the society of Sydney in sports, business, culture, community building and public life.
“But we know that while many leave for adventure, experience and fun, far too many of our young people are here today because you were left with no other choice but to go. You’ve been denied opportunity and your shot at a good life In Ireland.
“That is heart-breaking, and when Mary Lou said that Sinn Féin is working night and day to change things for you, so you can come home to a new Ireland, she meant it. And I mean it too.
“As somebody whose ambition it is to be Finance Minister in a Government of Change, this is especially close to my heart.
“I was born in Scotland. I am the son of Irish emigrants. My earliest memory is of the removal van parked outside our house in Donegal on our return to Ireland.
“My mother and father had left West Donegal in the early 1960s because there wasn’t any work. Frightening deprivation. No prospect of raising a family. Little chance of building a future. Of course, they weren’t alone.
“Their story is shared by thousands of others who, in search of work, had to leave the only home they ever knew.
“The Ireland of 2023 is a very different place. And yet, despite all this progress, another generation again looks to the airports and to the hope of a better life here in Australia, in the US, Britain, and Canada.
“Not because there’s no work - but because despite having jobs, despite having a good education, skills and qualifications, they are prevented from building a good future at home. We have an entire generation locked out of opportunity and prosperity. An entire generation locked out of home ownership.
“The problem is that we have a government that is jaded and out of ideas, so locked into the past that they are standing-by, refusing to seize these opportunities.
“It’s clear that to realise the immense opportunities for Ireland, we need a new political leadership with energy and ambition.
And we in Sinn Féin are ready to lead governments for real change, north and south.
“To those who have been forced to leave, I want you to know that we in Sinn Féin see you. We hear you. We are working hard for you. Working hard to make Ireland the home that you deserve, and we will create a genuine route back home for anybody who has left and wishes to return.”
Sinn Féin Finance spokesperson Pearse Doherty today met with Australian Finance Minister Katy Gallagher in Canberra to discuss ongoing change in Ireland, economic opportunities and deepening the relationship between Ireland and Australia.
Speaking from Canberra Pearse Doherty said:
“I was delighted to meet with Minister Gallagher. Australia is an important international ally to Ireland, politically, economically and socially and it is important the relationship between our two countries is strengthened.
“Today’s meeting with Minister for Finance Katy Gallagher was an opportunity to discuss how stronger, fairer economies can be built to deliver for ordinary workers and families in Ireland and in Australia.
“We discussed the Australian government’s plans to deliver high quality jobs and a better quality of life for its people. We also discussed how they are dealing with challenges such as climate change, health and large-scale affordable housing.
“We also discussed the growing conversation around constitutional change in Ireland and the huge economic potential that would be unlocked by Irish unity. Recent elections in the north saw seismic change. We now need to see the Executive get back up and running to work for all, to attract investment, to create jobs and harness economic opportunities.
“There is a long history and deep friendship between Ireland and Australia and now is the time to deepen these relationships in the interests of our people and to deliver stronger, fairer economies.”
Sinn Féin Finance Spokesperson Pearse Doherty and Foreign Affairs spokesperson Matt Carthy began their weeklong trip to Australia in Brisbane with a meeting with Queensland Health Minister Shannon Fentiman MP.
They also received briefings on Queensland’s energy and jobs plan and transitioning their energy grid, and visited two government social and affordable housing projects. They met with business and trade union leaders and finished the day at a community event with young Irish people who have recently emigrated to Australia.
Speaking from Brisbane, Pearse Doherty said:
“We were delighted to begin our trip to Australia meeting with Queensland Health Minister Shannon Fentiman MP to discuss change that is happening in Ireland including growing support for Irish unity and to look at how Australia is delivering in key areas such as health, affordable housing and climate change. We also got a briefing on Queensland energy and jobs plan and transitioning their energy grid and met with the Electrical Trades Union on their plan for transition.
“We met with Brisbane Housing Company which is delivering social and affordable housing in the city and QBuild which is the Queensland Government's building unit which is building and delivering prefab social and affordable housing while also training the next generation of tradespersons.
“We also attended a business roundtable event hosted by Irish Australia Chamber of Commerce where the focus was on jobs, tourism and renewable energy.
“Our first day concluded with a meeting with young Irish people who have recently emigrated to Australia- many because of the Irish government’s catastrophic failure in housing but who want to be able to return home. We assured them that Sinn Féin is working night and day to change things, so they can come home to a new Ireland.”
Sinn Féin spokesperson on Finance, Pearse Doherty TD, has called for the introduction of temporary and targeted mortgage interest relief to support households struggling with the sharp and sudden spike in interest rates.
The Donegal TD warned that many mortgage holders are facing interest rates as high as 10 percent and risk falling into arrears and financial distress.
Speaking today, Teachta Doherty said:
“In the past year the ECB raised its key interest rate nine times.
“As a result, hundreds of thousands of households have seen a massive increase in their mortgage interest costs.
“This is a massive income shock for households.
“The Central Bank estimates that one in five households will see their annual mortgage costs spiral by more than €5,700 as a result of these rate hikes.
“With two in five seeing their annual mortgage costs rise by more than €3,000.
“For so many workers and families, the spike in interest costs is too much to bear as they deal with a wider cost-of-living crisis.
“Households who had their mortgage loans sold to vulture funds without their consent, but with the support of Fine Gael and Fianna Fáil, are now facing interest rates as high as 10 percent.
“As vulture funds send another letter in the post informing them of another interest rate hike, many risk being pushed over the edge and into arrears.
“The Minister for Finance cannot stand idly by.
“Sinn Féin have called for the introduction of temporary and targeted mortgage interest relief, providing support to households with 30 percent of their increased interest costs.
“But it is clear that wider action is required.
“Banks should never have sold the mortgage loans of customers to vulture funds without their consent.
“This was something that Taoiseach Leo Varadkar and Minister Donohoe supported, with dire consequences for households.
“The Central Bank and retail banks must act to free households from the clutches of vulture funds.
“They have a moral obligation to provide a clear pathway for these borrowers to re-enter the mainstream mortgage market.
“For borrowers who have no option to fix their rates and are paying higher mortgage repayments than they would be if their loans were held by retail banks.
“It is time to right this wrong and for the Minister for Finance to convene a meeting with the Central Bank and retail banks and chart a way forward.”
Sinn Féin spokesperson on Finance, Pearse Doherty TD, has responded to figures published by Eurostat and the CSO showing that Irish energy prices have not fallen in line with other European countries.
Deputy Doherty has again called on Taoiseach Leo Varadkar to explain why he has failed to deliver on his commitment to take action against energy companies that fail to reduce prices for households.
The Donegal TD wrote to the Commission for Regulation of Utilities in June calling for the regulator to undertake an intensive and intrusive supervision of retail pricing in light of falling wholesale energy prices.
Speaking today, Teachta Doherty said:
“Figures released by the statistics office of the European Union show that while European energy prices fell in July, Irish energy prices increased.
“The figures released also make clear that while electricity prices have fallen steadily across Europe, Irish electricity prices have remained sky high.
“This is despite the significant drop in wholesale energy costs in the past year.
“In June the ESRI warned that the failure to pass on these reduced costs to households could be due to anti-competitive behaviour by energy companies in order to boost their profits.
“Yet we have had no action from the Taoiseach or the Government.
“This is why I wrote to the energy regulator in June requesting that it undertake intrusive supervision of prices energy companies are charging households.
“Workers and families continue to struggle under this cost of living crisis – they need transparency and action.”
Sinn Féin spokesperson on Finance, Pearse Doherty TD has welcomed the commencement of legislation that aims to rebalance the duty of care and reduce insurance costs.
The Donegal TD called on the insurance industry to respond to this reform by reducing insurance costs for consumers and businesses.
Speaking today, Teachta Doherty said:
“Rebalancing the duty of care is crucial to ensure businesses and voluntary groups can access insurance at affordable prices.
“The commencement of legislation to rebalance the duty of care is an important step.
“The Government’s Action Plan for Insurance Reform committed to making proposals to Cabinet to rebalance the duty of care by June 2021.
“That deadline was repeatedly missed.
“The commencement of this legislation, while long overdue, is welcome.
“It is crucial that the aims of the legislation are given effect.
“There is now a responsibility on those who will be required to implement the legislation, but also on the insurance industry to do the right thing and slash insurance costs.
“Over the past number of years there has been a significant drop in personal injury awards.
“These reforms to the duty of care will also reduce personal injury costs for insurance companies.
“Consumers and small businesses must benefit from these reforms, not insurers and their profits margins.
“The insurance industry must now respond by reducing insurance costs without delay.”
