Banks which raise mortgage rates should lose State guarantee — Flynn

Beverley Flynn TD has accused Permanent TSB of “outrageous contempt” for the Irish taxpayer by its decision to increase mortgage rates. The Mayo TD said it was a scandal that an institution which was saved from collapse by the taxpayer could so readily turn around and bite the hand that feeds it.

Deputy Flynn said that it was simply not good enough that, at a time of national crisis, a bank protected by the public could break rank and decide to put its own interests before that of the country and its people. “I am now calling for the bank guarantee to be withdrawn from any institution which increases the rate it is charging to its hard pressed customers,” she said.

“No institution can be allowed to have it both ways. It is one thing to eagerly grasp the State guarantee of survival, underwritten by the taxpayer, but it is entirely unacceptable to ambush the same taxpayer a second time, before the ink is dry on the first bailout,” she continued.

Dep Flynn said that the banking community seemed to have learned nothing from the recent brush with total collapse, from which they were rescued by the taxpayer. “The only way out of our financial mess is through the efforts of the Government, the banks, and the taxpayer working together and sharing the burden equally.

“If the banks are incapable of recognising their moral and civic duty to the country and its people, in this time of crisis, then the logical consequence should be the withdrawal of the guarantee which, like it or not, the banks depend on for their continued operation.”

Meanwhile trade union Mandate has called on members of the public not to verbally and physically abuse Permanent TSB staff following the mortgage lenders' interest rate hike.

In a statement, the union claimed that the situation for some members of staff has been “extremely stressful” since last week's announcement, with some members being spat at and others verbally abused.


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