30 July 2009 Edition
Finance Minister must halt bank interest hikes
FINANCE Minister Brian Lenihan has refused to intervene in Permanent TSB’s decision to hike up interest rates on mortgage holders, thus negating the recent European Central Bank reductions. The minister’s comment that the increase reflects commercial market realities is breathtakingly arrogant and illustrates magnificently in whose interests his decisions are made.
Lenihan has mooted a possible reduction in the minimum wage and his government is actively considering reducing social welfare payments, as recommended by the McCarthy Report. At every turn this government is attacking the low-paid and the vulnerable and doing whatever it takes to protect the profits on the banks.
It is interesting to note that one of the minister’s appointees to the Permanent TSB board is Ray McSharry, the former Minister for Finance who appointed Colm McCarthy to the original ‘An Bord Snip’ in 1987.
The European Central Bank’s interest rate reductions that have been so instrumental in bringing down costs of living will be negated if the Government gives this signal to the banking sector that it is OK to hike up rates. Taking money out of the general economy and putting it into the coffers of financial institutions profits is economically inept and socially reckless.
Lenihan has mooted a possible reduction in the minimum wage and his government is actively considering reducing social welfare payments, as recommended by the McCarthy Report. At every turn this government is attacking the low-paid and the vulnerable and doing whatever it takes to protect the profits on the banks.
It is interesting to note that one of the minister’s appointees to the Permanent TSB board is Ray McSharry, the former Minister for Finance who appointed Colm McCarthy to the original ‘An Bord Snip’ in 1987.
The European Central Bank’s interest rate reductions that have been so instrumental in bringing down costs of living will be negated if the Government gives this signal to the banking sector that it is OK to hike up rates. Taking money out of the general economy and putting it into the coffers of financial institutions profits is economically inept and socially reckless.