Mortgage Holders and Small Businesses Being Ripped Off By Government - Seamus Healy
A deliberate Government Policy is ripping off Irish Mortgage Holders and Small Businesses.According a survey of interest rates published by the Central Bank, variable rate new housing loans averaged 4.13% Typical Eurozone mortgage rates are 2.1%-roughly half the Irish rate.And interest rates for small businesses have come down everywhere in Europe except Ireland, according to retired governor of the Central Bank, Patrick Honohan .The excuse given by Government and Central Bank is that they “can't intervene in the market”This is pure deception. They are intervening in the market with the effect of keeping rates artificially high! There is effectively no competition in the Irish MarketFine Gael Finance Minister Michael Noonan has designated Bank of Ireland(BoI) and Allied Irish Bank (AIB) as “Pillar Banks”. This means that they cannot be allowed to fail and will be subsidised or bailed out again by government if necessary. This has frightened off foreign competition-Danske Bank and Bank of Scotland have already left.This allows AIB, BoI and Permanent TSB to run a cosy cartel at the expense of householders and small businesses.The Government is the owner of AIB, Permanent TSB and EBS as it holds the vast majority of the shares. It can call special general meetings of shareholders at any time and it can instruct the banks to lower the rates. All other banks would then have to lower their rates to stay in businessBut the government will not do this. Instead it hypocritically calls in the banks from time to time “to express its concern” at the high rates. The high interest rates are, in effect, a penal tax imposed by the government on householders and small businesses.The balance sheets of the banks are being repaired by this tax. The banks are being “fattened up for privatisation”. When sold off the money will be used to pay back loans borrowed to bail out huge investors in the banks before they crashed. There will be no compensation by government for small investors such as investors of pension and redundancy lump sums who were wiped out in the crash of bank shares.Labour and Fine Gael are deliberately running this scam on the public. Fianna Fáil are just moaning about it rather than exposing this huge scandal.Candidates of these parties should be forced to explain and to commit to ending the scamTHIS INJUSTICE TO MORTGAGE HOLDERS AND SMALL BUSINESSES MUST END.