METRO EDITION

IRELAND’SBEST-SELLINGDAILYNEWSPAPER www.independent.ie Tuesday 24 October 2017 €2.00 (£1.30 in Northern Ireland) C Racingmove putsZebo’s Irelandcareerindoubt FARMING:BRUSSELSPROPOSESLIMITSONCAPPAYMENTS Now banks owe tracker scam victims over €1bn n 7,000 customers are ‘still in the dark’

Charlie Weston meet the chief executive of AIB and Kevin Doyle this week. Mr Donohoe is due to issue THE tracker mortgage scandal a statement confirming he has is set to cost the banks €1bn. broad agreement from the main Banks have already put aside lenders to speed up the redress €600m to cover the cost of the scheme, once he has met all the overcharging after they refused banks. However, this deadline to allow customers who had is expected to be challenging been on fixed rates to return to for both KBC and Bank of Ire- their good-value trackers. land as they are understood However, the leading expert to be behind in their efforts on the tracker scam, Padraic to identify affected customers Kissane, said the final bill will and the amounts of money to be at least €1bn as new cases be refunded. are emerging every day. Sources say Mr Donohoe told Mr Kissane said the overall bank bosses he believes they number of affected customers have been “dragging their feet is likely to be well over 30,000, in solving the problem, at real far in excess of the 20,000 cases human cost”. already disclosed. At last night’s Cabinet meet- The bosses of Bank of Ireland, ing, Mr Donohoe told ministers Permanent TSB and KBC were as many as 7,000 bank custom- hauled before Finance Minister ers affected by the scandal are Paschal Donohoe yesterday. He “still in the dark” about it. will meet the head of Ulster Bank today and is expected to Report and analysis, P4&5 Flu fears as two hospitalised

TWO people have already been hospitalised with flu this month while two outbreaks have occurred in residential facilities. One of the patients hospitalised was found to have the A(H3N2) strain that caused one of Australia’s worst winters for flu in years. It follows revelations in the Irish Independent that this year’s flu vaccine is just 40pc to 60pc effective. The fear is that it will be least effective in older people who are most at risk because of their weakened immune response to the vaccine. Carjack rampage This is the dramatic moment armed gardaí arrested a man at Citywest Shopping Centre in Dublin after a chase around the city that followed the hijacking of six cars and a domestic Full report, page 12 lasted eight hours incident in Tallaght. Photo: Colin Keegan/Collins. FULL REPORTS, Pages 6&7

Recommended retail price of the Irish Independent in ROI is €2.00 (£1.30 in Northern Ireland) Vol. 126 No. 254 Irish Independent 4 Tuesday 24 October 2017 Irish Independent News Tracker scandal > Kid gloves won’t teach our bankers – they need some tough love – COLETTE BROWNE p21 Tracker mortgage scam is lik

Charlie Weston A leading expert on the track- Banks have already put aside There was a broad consen- could get refunds by Christmas. THOUSANDS Personal Finance Editor er scam said lenders were refus- €600m to cover the cost of the sus among ministers that the But banks were holding out ing to agree to return trackers overcharging. banks must accelerate the rate on a similar number of custom- AWAITREFUNDS THE tracker mortgage scandal to as many as 13,000 people. At last night’s Cabinet meet- of compensation. ers they insisted were not due is set to cost banks €1bn. Financial adviser Padraic ing, Finance Minister Paschal The scale of the scam was refunds, Mr Kissane said. AIB The higher cost comes as tens Kissane has 52 cases ready to Donohoe told ministers as exposed as Central Bank Gov- Mr Kissane, who has been The State’s largest bank, of thousands of homeowners go to the High Court. many as 7,000 bank customers ernor Philip Lane insisted that chasing banks for six years to which also owns EBS, has an are being denied the return of He estimates the total cost affected by the scandal are regulators were not ignoring get them to give mortgage hold- estimated 3,200 cases. Of a tracker mortgage and refunds to the banks of the tracker rip- “still in the dark”. He said he their consumer protection role. ers their trackers back, said the these, 2,900 mortgage holders as banks dig their heels in and off will be at least €1bn, due to wants the banks to speed up the He said most of the 13,000 scale of the rip-off was far larger have been put back on a tracker refuse to return them to the the additional cases emerging process of identifying these cus- account holders that banks have than appreciated up to now. rate, and paid refunds for being good-value rates. every day. tomers so they can be notified. now admitted were overcharged A review ordered by the Cen- overcharged interest for years and received compensation, the lender says. The bank is paying compensation of 15pc of the overcharged amount for homeowners, and 7.5pc for THETRACKERSCANDAL: those with investor mortgages. Lenders to Some 14 people lost homes. HOWDIDWEGETHERE? Bank of Ireland The lender restored 2,100 customers to tracker rates in outline how How did the tracker this figure will increase 2010. It has another 4,518 mortgage scandal come dramatically with some cases at present. Some 600 to light? estimates suggesting the final of these are due to people It has been known for number of people affected will being wrongly denied a tracker. many years that there were be 30,000. Another 3,916 customers were cash will be problems regarding how banks on the wrong tracker rate. No treated tracker mortgage What’s the big problem? refunds or compensation have customers. In recent years tracker been paid, according to Fianna The issue started to get mortgages were substantially Fáil’s Michael McGrath, based more attention in 2015 when cheaper than variable-rate on evidence given by the bank paid back it was reported that at least mortgages – but banks refused to the Oireachtas Finance 7,100 mortgage accounts to allow customers who were Committee. BoI will not say were affected. At that stage, contractually entitled to be what percentage of any refunds the Central Bank launched an on the tracker rates to avail it will pay in compensation. The Charlie Weston with the minister and we lis- industry-wide examination of them. As a result, those lender is facing Central Bank and Kevin Doyle tened very carefully to what of tracker mortgage-related affected paid out thousands enforcement action over its the minister had to say and his issues. more in interest than they handling of the scandal. BANKS at the centre of the concerns. should have. tracker mortgage scandal are “We are treating this matter What are the latest KBC expected to issue a statement very seriously and we’ll be mak- figures? Have people lost their The lender is refusing to tell outlining their plans for paying ing a statement in due course.” At the end of last month the homes? TDs or the media how many compensation in the coming After leaving the meeting, Central Bank said around Yes. To date it has been tracker-loss cases it has. days. KBC Bank chief executive Wim 13,000 customers were reported that customers lost KBC is facing Central Bank It is understood the institu- Verbraeken said the minister wrongly denied access to a ownership of 102 properties as enforcement action over its tions hauled before Finance had conveyed the Government’s tracker mortgage. However, a result of being denied their handling of the scandal. Minister Paschal Donohoe have grave concerns. He said the it is widely expected that tracker mortgage rate. This agreed to issue separate state- bank would make a full state- Ulster Bank ments confirming the ‘next ment later this week. The lender told the Oireachtas steps’ to paying the majority of Permanent TSB did not com- Finance Committee recently it people affected before Christ- ment on its meeting. has 3,500 cases, up from 2,000. mas. Banks are understood to have Just 40 mortgage holders Mr Donohoe is also due to explained to Mr Donohoe that Central Bank has failed to protect consumers, so it should relinquish role have received refunds. It is issue a statement confirming he it is a massive task to work out planning to pay compensation has broad agreement from the the extent of overcharging on of between 12pc and 20pc of main lenders to speed up the each individual account where the overcharged amount. redress scheme, after he meets a tracker product should have T IS high time the Now it is beginning to The lender is facing Central Ulster Bank and AIB. been in place. Central Bank had its Charlie dawn on large numbers of Bank enforcement action over However, this deadline is Each mortgage account has consumer protection people that the Central Bank its handling of the scandal. expected to be challenging for to be reconstituted as if there role removed from it. Weston has been woefully inadequate both KBC and Bank of Ireland was a tracker rate in place I The Central Bank in its handling of the tracker Permanent TSB as they are understood to be once the holder had come off repeatedly sells consumers Personal Finance theft perpetrated by the Some 1,370 mortgage behind in their efforts to iden- a fixed rate. short, as is evident from its banks. holders have got back tify affected customers and Some of those affected went lamentable performance in Editor It can’t say it has not been trackers, received refunds the amounts of money to be into arrears, further complicat- trying to get banks to do the warned. and compensation. But the refunded. ing the exercise. right thing in the tracker Eight years ago this lender recently said there were Sources say Mr Donohoe told Once the overcharged mortgage scam. newspaper reported that another 579 cases pending. bank bosses he believes they amount and the refund due Consumers know only too then financial services Compensation based on 10pc have been “dragging their feet is worked out, it then has to well that the Central Bank ombudsman Joe Meade of the overcharged amount in solving the problem, at real be verified and confirmed by can’t be relied on to look after wanted all mortgage lenders is paid. The lender is facing human cost”. third-party consultants. their interests. to be probed to ensure they Central Bank enforcement After new Bank of Ireland Taoiseach Leo Varadkar yes- The motor insurance and were honouring agreements action over its handling of the boss Francesca McDonagh met terday insisted that taxpayers variable mortgage rate allowing people to retain scandal. the minister, the bank would will not be left to foot the bill rip-offs bear eloquent their tracker mortgages. only say: “We had a meeting for the banks’ mistakes. testimony to that. Mr Meade demanded the

began mp up presenter yByrne. period year ly being significantly in the final third Thematterwas eventual- 24 in all of 2016. Mr Stafford advised anyone of 2016 and that trend had ly settled amid allegations ACerberus spokesman said dealing with afund to seek to MANY people think customers as far back as continued this year. Launceston appointed areceiv- it would not be commenting. do adeal with it rather than Thefigures come amid ongo- er even though the partnership’s Asource working with one ignoring the issue, saying funds ing concern about how debtors loans were fully performing. fund said that having had were pragmatic, commercial Personal are treated by vulture funds, Thenextmost prolific fund possession of loans for two and seeking to do deals. HOW WE’VE with some debtors complaining has been Goldman Sachs, with to three years, the funds “Theyhavenomoralityhang- about difficulties encountered twoofits affiliates, Ennis Prop- were now dealing with the ups about debt forgiveness. Give the tracker scandal has engaging or negotiating with erty Finance and Kenmare portions of portfolios where them adeal and theywill move Watchdog Finance November 2009. such companies. Property Finance, filing 146 theybelieve theyare getting on,”hesaid. LED THE only emerged in the Editor Charlie We reported at the time Tracker mortgage scandal grows as 20,000 affected Charlie Weston holders to thecorrect rates, andcompensatethem. afinancial consultant, who Kissane(inset)said. “Asfar as we areaware, the Weston Personal Finance Editor andcompensatethem. Thetracker mess hasbeen hasbeenadvisingindividuals However,heclaimed some vast majority of customers urged to At theend of 2015, the describedasthe largest wronglymovedoff tracker Bank of Ireland staff whohad beenplaced on the THEtracker mortgage CentralBank ordered15 financialscandaltohit this rates hassaidheexpects the membershad notbeen wrongrateofinterest have scandalisset to widen again. lenders to trawlthrough their country. At least 100 next update from theCentral restored to thelow interest nowbeenput on thecorrect last two years. reported on that then-financial Aleading expert now mortgage books to seek out mortgage holders lost Bank to revealthatatleast home loanstheywereentitled tracker rate,” he said. expects 20,000 homeowners allthose whohavebeen theirhomesbecause 20,000 homeowners have to be on.Asmanyas2,000 But Mr McGrathsaidthe to end up beingrestored to overcharged. of thetracker rate beenhit by thescandal. Bank of Ireland staffhad delayinpaying customers WAY ON trackersand compensated, Most customers issue.Tracker PadraicKissane said:“The been incorrectlymovedoff back themoneytheywere the tracker afterbeing charged the have beenrestored to rates areset at a current figure is 15,000, butit tracker rates at one point. overcharged andpaying them wronginterest rates. thecorrect tracker percentageover will rise to 20,000 andcould Bank of Ireland insisted appropriatecompensation The Irish Independent investigate Up to now it wasthought rate,but the theEuropean pass that.” anyone entitled to atracker wascompletely unacceptable. services ombudsman Joe that 15,000 mortgage holders majority of banks CentralBank, Most bankshaverestored hasnow got it back. “Can youimagineifthe were affected, but thereare have yettorefund andtend to be affected customers to tracker Fianna Fáil’s finance shoewas on theother foot issue in at least5,000 morevictims. homeowners the farcheaper than rates,but only AIB, EBSand spokesmanMichael McGrath andthe bank realised it had It comesasthe Central overcharged variable or Permanent TSBhavealso haswritten to CentralBank been undercharging a Bank is duethis month to interest fixed refundedthem over the governorPhilipLanecalling customer foryears? Idon’t issueanupdate on theefforts rates. overcharged interest and on him to takeatougher line think it would be so shy in EXPOSING first reported on issues banks in November Meade wanted mortgage by bankstorestore trackers Now compensated them,Mr with banksonthe issue. seeking itsmoneyback.” involving banks taking 2009 TRACKER lenders probed to ensure The Irish Independent has led the way in trackers off their tracker row that they were reporting on the tracker scandal. Above and SCANDAL right, coverage from September and October Irish Independent Tuesday 24 October 2017 5 Tracker scandal News er mortgage scam is likely to cost banks €1bn

tral Bank into the loan books of denied the low-cost mortgages. But Mr Kissane told the Irish who are impacted but the banks Kissane said. the banks yesterday, Prof Lane 15 lenders has identified 13,000 He warned that there would be Independent banks were deny- are refusing to admit to.” Staff at AIB were also affect- said the Central Bank was “fully mortgage holders wrongly de- “substantial” numbers in addi- ing trackers to an estimated Even when some people were ed, while KBC has yet to say how engaged with our consumer nied a tracker rate. tion to the 20,000 tracker-deni- 13,000 cases. having trackers restored to many tracker loss cases it has. protection mandate” over the This is up 3,000 since March. al cases already disclosed. This would take the overall them, banks were putting them Banking analyst at Investec tracker rip-off. It is on top of 7,100 cases pre- Speaking yesterday, Prof number of affected customers on margins as high as 3.67pc, Owen Callan has estimated the The Government is con- viously admitted to by banks. Lane said: “We continue to to well over 30,000. not considered a real tracker tracker scam will cost lenders sidering taking the consumer Prof Lane admitted at the press the banks to expand their Mr Kissane said: “The Cen- rate. a combined €600m, but Mr protection role off the Central Oireachtas Finance Commit- coverage to make sure that all tral Bank says there are 13,000 As many as 2,000 staff mem- Kissane said the final figure Bank because of dissatisfaction tee last week two unnamed those affected are included in people impacted in the latest bers of Bank of Ireland were would be in excess of €1bn. with its performance in getting lenders had failed to identify their schemes. That is the cur- redress programme. due the return of a tracker, but Leaving a meeting between the banks to restore trackers to or recognise mortgage holders rent focus of our work...” “But there are as many again the bank was denying this, Mr Mr Donohoe and a number of customers.

From left: KBC chief executive Wim Verbraeken; Permanent TSB chief executive Jeremy Masding; Bank of Ireland chief executive Francesca McDonagh

includes 23 private dwelling What is the Government and 79 buy-to-let properties. doing? However, families who Finance Minister Paschal managed to hold on to their Donohoe is meeting the banks homes while paying higher this week to “admonish” them. rates have also told of their He is demanding that they emotional turmoil. At a recent bring an end to the controversy Oireachtas hearing, some of or else the Government will the victims described how the “take action”. What form this stress of trying to meet their action might take has not been repayments caused serious defined. health and family problems. When might the issue be Why haven’t the banks resolved? given people back their The Finance Minister will not money? be making any further public The lenders have dragged statement until he has met all their heels on the issue. Initial the banks. redress and compensation However, sources said last proposals feel short of the night that the Government Central Bank’s expectations. anticipate the banks will make Around 25pc of customers public statements later in the have received compensation week. Most of the banks are but the vast majority have not. expected to agree to start The Governor of the Central paying compensation by Bank has now said that he Christmas. expects redress to be sorted by Christmas. Kevin Doyle Central Bank has failed to protect consumers, so it should relinquish role

Central Bank carry out the requested their lender to put crisis hit to take people off failed to identify or recognise One lender even tried to in this case – will call a halt probe after he found against them back on a tracker, this trackers because they were mortgage holders denied the get the refund percentage to the misbehaviour. a lender that would not allow was refused. losing money on them. low-cost mortgages, the down as low as 2pc, but Up to now the Central a couple coming off a Mr Meade ordered the However, it was not until Central Bank has told us. regulators said this was too Bank has allowed the kids to fixed-rate mortgage to move bank to give the couple back six years later that Mr Just 3,200 people have little. do pretty much as they back on to a tracker as their tracker. Meade’s warnings were been refunded and Startling also is the fact please. agreed. Trackers offer a guarantee heeded and a review of the compensated after having that just 26 Central Bank Enough is enough. It is He relayed how one case he to the borrower that the wrongful taking of trackers money taken from them. officials have been assigned now high time the Central had adjudicated on mortgage rate they pay will off mortgage holders was to the tracker review, out of a Bank had its consumer concerned a couple that had always be a set percentage ordered by Central Bank Redress total 1,600 staff. protection role, and the initially taken out a tracker. above the European Central mandarins. And the lenders are allowed This is the best we get from funding it gets for this from The couple decided to lock Bank rate. But even now, two years to write their own rules for the Central Bank. It is little the State and the institutions into a fixed-rate mortgage on The difference in payments into the tracker review the redress scheme. short of a shambles. it regulates, transferred over the basis that they had an between a tracker and a ordered by regulators, They are offering different The banks are like to the Consumer Protection agreement with the lender to variable can be €500 a progress is painfully slow. amounts of compensation. children. Commission. go back to the tracker at the month. Only three of the 15 lenders Some are ponying up as much They are pushing and That may not help victims end of the fixed period. Mr Meade had correctly have begun to right the as 15pc of the interest refund, pushing to see how much of the tracker scam, but it When they finished the spotted that lenders were wrongs. with others offering half as they can get away with before may at least ensure there are fixed-rate period and desperate when the financial Two unnamed lenders have much. the parent – the Central Bank no new banking outrages.

Whymy honouring their allow a couple who were METRO EDITION Cheatingnowthe favourite Ordinary lives ruined: mortgage scandal victims reveal their trauma norminrugby wordisNo NeilFrancis– SeeSport BairbrePower IRELAND’SBEST-SELLINGDAILYNEWSPAPER www.independent.ie Friday 20 October 2017 €2.00 (£1.30 in Northern Ireland) C agreements allowing coming off a fixed-rate Artsand PEOPLE have died by suicide Beaumont Hospital ‘warzone’ to get new €40m A&E LEINSTER because bankstooktheir craftshaven Kevin Doyle Themove should relieve HSE’sCapital Budget for 2018 seen aletterdated October 12 patients each year. ever-increasing number of pa- tracker mortgages away,forcing Group Political Editor pressure on what has been one will also pacify Independent Al- in which the HSE advisedthe It also receives patients for tients being treated on trolleys. RUGBY of the country’sbusiest A&Es liance minister Finian McGrath CEO of Beaumont Hospital Ian Neurosurgical Assessment from Lastwinter patient organisa- for €2.25m ANEW €40m Emergency and at the centre of hospital who had demanded the new ED Carter that an initial €100,000 other hospitals throughout the tions described the overcrowd- them to overpay, aDáil Department has finally been crises on countless occasions in his constituencyaspayback will be made available next year country. ing situation in Beaumont as 8-PAGEMAGAZINE approved for Beaumont Hos- in recent years. forsupporting Leo Varadkar’s for “design team fees”. However it has been plagued “akin to awarzone”. FREEINSIDE PROPERTY customers to retain committeewas told yesterday mortgage to move back pital, the Irish Independent The decision to include the minority Government. The existing ED provides by problems in recent years as can reveal. long-awaited projectinthe The Irish Independent has services to in excess of 50,000 staffstruggled to cope with the Full story, Page 22 Thetraumasufferedby +FULLDETAILSOFGAAPROVINCIALCHAMPIONSHIPDRAWS SEESPORT homeowners whohad the mortgages taken offthemwas ‘She wasborn in the storm... but we’re not Now country spelledout in harrowing detail on ‘weather naming her Ophelia’ Central Bank boss trackers. He called on onto a tracker as had bomb’ alert by victims of thescandal. BABY Maria sure knowshow to make an entrance –just as Storm Ophelia Ralph Riegel wasatits most ferocious. Amongthemwere(from left AFTER enduring aham- Hermother Sonya Burke hadtobe mering from Hurricane rushed from herhome in Crosshaven Ophelia, parts of the coun- to right) HazelMelbourne, to Cork UniversityMaternity tryare now on high alert Hospital by ambulanceatthe height to tracker victims: for flooding and high winds Thomas Ryan,Niamh Byrne of thestorm on Monday morning. amid warnings of a“weath- However,Sonyahas insisted that er bomb”. she won’t be calling thenew tot MetÉireann has issued andHelen Grogan. Ophelia to mark herdramatic two Status Orange warnings the Central Bank to been agreed. However, it entrance to theworld. and three Status Yellow Thomas Ryan told the Mother anddaughter remainin warnings as Storm Brian hospital as theirhome is still without is set to strike the country power andwater due to thestorm. ‘You’reon your own’ later today. Oireachtas financecommittee Meanwhile, thousandsoffarmers Brian will spell further across Munster arestruggling to run miseryfor tens of thousands theirfarmswithout power.Dairy of households still without he suffered astrokeatthe ageof farmers areamongthe worst hitand electricity and water fol- aretrying to hire generators to n Lane tells distraught lowing Ophelia on Monday. 47,while his wife hadanervous power theirmilkingparlours. Orange wind warnings have Report: Pages 2-5 been issued for Wexford, Photo: Mark Condren homeowners to go to Clare, Cork, Kerry,Water- carry out the probe after breakdown.MrRyanclaimed was not until the end of ford, Galway and Mayo. court or ombudsman both events werearesultof Full story, Pages 10-11 Charlie Weston and Cormac McQuinn losing hisPermanent TSB THE Central Bank has been accused of desert- New type of Tracker scandal banks ing victims of the tracker mortgage scandal by failing to use its powers to force banks to tracker rate.Financial adviser return trackers to those who lost them. pasta prevents Governor Philip Lane told an Oireachtas PadraicKissanedescribed the committee it was asking banks to write to heart attacks people they refuse to give trackers back to, he had found against a 2015 the Central Bank and told victims they can go to the courts or Nick Squire tracker scandalas“financial told: fix it or face levy the ombudsman. Sinn Féin’s Pearse Doherty accused the Scientists in Italy have de- Central Bank of adereliction of its duty and he veloped anew typeofpasta abuseonagrand scale”. asked why the regulator will not use the 2013 that can help ward offheart attacks. Charlie Weston “scandalous” after it emerged If the Governmentdoes not REPORTS AND ANALYSIS: The new pasta, which Personal Finance Editor that lenderswere actively frus- MORTGAGEOUTRAGE see results before the year ends, PAGES8&28-29 Charlie Weston is being touted as benefi- trating the efforts of regulators. Banks understand only one it will provide the Central Bank Central Bank no longer cial to well-being,ismade THE Government has threat- The Government is devising with enhanced powers or will from amixture of standard Full story, Pages 16-17 ened to hit banks with massive aplan to hit banks with steep increase taxes on the banks. But fitfor purpose and boss thing –sohit their bottom line Recommended retail price of the Irish Independent durum wheat flour mixed tax bills if they do not restore tax increases, after the Central at the moment, banks like AIB, in ROIis€2.00 (£1.30 in Northern Ireland) Lane out of his depth P4 CharlieWeston, Page 8 Vol. 126 No. 250 Irish Independent with whole-grain barley mortgage customers to their Bank watchdog was accused Bank of Ireland and Permanent flour,which is rich in afibre lender that would not acted on his advice. tracker rates before the end of of failing to use all its powers TSB will not have to pay any tax powers it was given to ensure these people get called beta-glucan which the year. to resolve the tracker scandal. with them and they must re- were forced on to higher inter- on profits for decades to come redress as they are being overcharged now. enchances the growth of Taoiseach Leo Varadkar said Mr Varadkar warned the store the low-cost mortgages to est rates after the banks refused because they are sitting on The Central Bank was “the dog that doesn’t new blood vessels. the behaviour of the banks was banks that he is losing patience at least 13,000 borrowers who them the right to atracker. multi-billion euro “tax losses”. bark”,MrDoherty said. Prof Lane said the Those blood vessels then focus is on getting the banks to restore and form “natural bypasses” in 36

Edited by Maeve Dineen [email protected] business 27-32 Talbot St, Dublin 1 www.independent.ie Tuesday 17 March 2009

::: Markets KBC denies

ISEQ Global stocks soar claims it is x UP OPENED 75 2,015 exploiting CLOSED: 2,090 vulnerable DUBLIN stocks closed ahead after G20 vows to with bank shares rising sharply in the wake of a strong start to customers the year from UK peer Barclays. Financial stocks ignored news that S&P had raised the risk MORTGAGES assessment on the Irish banks, Charlie Weston while industrial shares were up tackle toxic assets on hopes that the global Personal Finance Editor recession might end this year. KBC Homeloans has denied

FTSE 100 exploiting vulnerable mortgage

Fed chairman’s recession prediction lifts markets for fifth day holders after it admitted it told UP a customer struggling to meet OPENED x 110 repayments that it would only 3,754 extend an interest-only period CLOSED: if the couple came off their 3,864 tracker mortgage. The Financial Regulator BARCLAYS led the FTSE 100 warned lenders in October that Index to gains of almost 3pc as they must act in the best inter- London's blue-chip stocks kept ests of consumers when it up their recent momentum. The comes to switching from track- banking giant soared to gains ers to other forms of mortgages. of almost 23pc after confirming Financial adviser Karl Deeter talks to sell part of its fund accused KBC Homeloans of management business to forcing a customer off a track- strengthen its finances. er mortgage. The couple want to extend the interest-only peri-

od on their homeloan.

NIKKEI Currently the couple’s track- UP er rate is 1.1pc over the Euro- x 135 pean Central Bank rate, or 2.6pc OPENED at present. 7,569 But Mr Deeter said that KBC CLOSED: Homeloans told him it would 7,704 only extend the interest-only period if the customers changed JAPAN'S Nikkei average gained to a standard variable rate, 1.8pc to post its highest close in which is 2.6pc above the ECB a month, with banks such as rate. This means they would go Mitsubishi UFJ Financial from an interest rate of 2.6pc to jumping amid easing fears 3.99pc. about the health of US lenders. The benchmark finished above Brutal the key 25-day moving “In trying to negotiate with average. banks it would be brutal if bor- Fed chairman Ben Bernanke being interviewed at the Federal Reserve Board in Washington at the weekend by 60 Minutes rowers in difficulty were nego- correspondent Scott Pelle.Mr Bernanke said if the government succeeded in stabilising the financial system, the recession would tiated with by banks in a DOW probably end this year and the economy would expand in 2010. manner where they end up DOWN worse off,” Mr Deeter said. 7 eral Electric Co climbed 7pc as er to help global banks recover “going to take some patience. Consumer director of the OPENED MARKETS UBS AG said more “negative from more than $1.2 trillion in It’s going to take some support”, Financial Regulator, Mary 7,224 catalysts” were less likely. credit losses. he said. O’Dea, warned lenders before CLOSED x Pat 7,217 Shares ended almost flat on Bernanke said in an inter- And he reiterated that, Christmas that they must dis- Boyle Wall St after government data view that if the government should the government succeed close the “short, medium and showed that US industrial pro- succeeded in stabilising the in stabilising financial markets, long-term effects of switching” THE Dow industrials and the GLOBAL stocks climbed for a duction slumped more than financial system, the recession the recession would probably from a tracker for each con- S&P 500 shed earlier gains as fifth day yesterday as the Group forecast. would probably end this year end this year and the economy sumer. Barclays said it had a strong of 20 vowed to clean up toxic A slide in exports and a steep and the economy would expand would expand in 2010. “Green Ms O’Dea also advised con- start for 2009. The NASDAQ's assets, Federal Reserve chair- decline in demand for goods in 2010. shoots” were appearing in some sumers to make sure they are gains were limited, however,as man Ben S Bernanke said the from airplanes to computers Bernanke said “political will” markets aided by the Fed, and fully aware of the consequences some investors pulled money recession may end this year and hurt the broader US economy, there has been “some improve- of making such a switch. out of semiconductor and Barclays Plc reported a “strong” reducing output at factories, ment” in banks, he said. A spokesman for KBC Home- biotech shares to pour funds start to 2009. mines and utilities. 3.5pc “We’ve averted” the risk of a loans denied the lender was into recently beaten down In Dublin, shares were up The rise in the ISEQ depression, Bernanke said. seeking to exploit vulnerable Production financial stocks. another 3.5pc at the close, with in Dublin “Now the problem is to get the customers by encouraging them bank shares on the rebound Industrial production fell 1.4pc thing working properly again.” to ditch tracker mortgages. OTHER INDICES and posting gains of around in February, the fourth consec- “At the moment, there seems The spokesman said the cus- 15pc. Financial stocks also dom- utive month of losses. and stable banking were to be more good stories than tomers in question were seeking Eurotop 100 1,553 h inated the risers’ board in other Economists in a Bloomberg essential for the US economy to bad and that’s encouraging,” to extend the interest-only peri- Nasdaq 1,404 x markets. News survey forecast an average rebound from the sharpest said Richard Sichel, who over- od beyond the maximum Dublin general index 2,686 h Barclays, the UK’s third- 1.3pc drop. A separate report recession in a quarter century. sees $1.3bn as chief investment allowed period of three years. biggest bank, jumped 23pc. Cit- yesterday revealed that manu- “The biggest risk is that, you officer at Philadelphia Trust Co. If the lender agrees to extend Financial index 373 h igroup and Bank of America, facturing in New York state con- know, we don’t have the politi- “It’s been a long time since the interest-only period the ITEQ index 331 h which triggered a record rally in tracted in March at the fastest cal will,” Bernanke said. we’ve heard positive news from mortgage would switch to a financial shares last week after pace on record. “Recovery is not going to hap- large banks. One week doesn’t standard variable one, but the saying they were profitable in The rally came after finance pen until the financial markets make a bull market, but it gives couple would go back to a track- Markets, page 40 January and February, added chiefs from the Group of 20 and the banks are stabilised,” confidence that there is some er rate when the the new inter- 40pc and 19pc respectively. Gen- nations vowed to work togeth- and the government’s plan is light ahead.” est-only period is up. 8 Monday 4 September 2017 Irish Independent News Housing > Grafton Group CEO: Government mustn’t create housing price spike – BUSINESS p23 Vulture funds ramp

Tom Poynton at his home in Castlelands, Balbriggan, Co up number of debt Dublin. Photo: chase cases tenfold Caroline Quinn ■ Foreign firms stay silent as they move to pursue borrowers’ assets

Shane Phelan no engagement or repayment. Legal Affairs Editor “Where they believe the person is in a position to repay FOREIGN vulture funds that all or part of a loan but is choos- bought up large swathes of dis- ing not to they will in the final tressed Irish loans have signifi- instance take the legal route as cantly ramped up their pursuit they feel they have no alterna- of borrowers. tive,” the source said. A tenfold increase has been The rise in vulture fund noted in the number of debt en- cases was described as “entirely forcement cases being taken in predicable” by Jim Stafford, the High Court by major funds. There have been 517 cases taken against debtors so far this year managing partner of corporate The surge in legal actions recovery and insolvency firm is likely to create further anx- Many of the cases brought High Court actions between Friel Stafford. iety over tactics employed by over the past year involve them so far this year, compared He said banks such as ACC the funds to maximise their commercial debts, but the to just 16 in the same period and Danske Bank had been investments in Ireland. cases also involve buy-to-let last year and 48 in all of 2016. “first out of the blocks” with Previous concerns led to the mortgages and potential home The fund declined to comment. cases in 2011 and these were introduction of laws protecting repossessions. A Goldman Sachs affiliate later followed by Bank of renters from eviction, and the CarVal, the US investment was at the centre of the infa- Ireland and then AIB. closing of loopholes that al- fund that bought distressed mous Tyrrelstown controversy Now the vulture funds were lowed some entities to pay little loan books once held by Anglo after its deal with a developer issuing proceedings after or no tax on their Irish profits. Irish Bank, Lloyds and Bank of resulted in eviction letters being spending time “to get their An analysis of High Court Scotland Ireland, has been the sent to dozens of tenants. feet beneath the table and un- data revealed 517 cases had been most prolific this year. derstand what they are dealing lodged by companies affiliated Its Irish affiliates have initi- Landlord with”. with CarVal, Cerberus, Goldman ated at least 240 sets of High The controversy prompted the Mr Stafford said the process Sachs, Deutsche Bank, Apollo Court proceedings since Jan- so-called Tyrrelstown amend- has involved the appointment and Oaktree so far this year – uary. In comparison, the fund ment, a law allowing tenants to of management agents such as compared to just 53 in the same initiated just 20 High Court remain in situ where a landlord Capita and Pepper to engage period last year. actions in the first eight months is planning to sell 10 or more with debtors. The vast majority of these of 2016 and 70 in all of last year. units in a development. “If they get engagement back cases involve applications for A CarVal spokesman declined Affiliates of Cerberus, the you will get some type of deal summary judgment against to comment. US fund that bought Nama’s done,” said Mr Stafford. debtors, after which the funds One CarVal affiliate, Project Eagle portfolio, the sale “But in some cases you don’t can then seek to pursue bor- Launceston Property Finance, of which is being investigated get engagement or there might rowers’ assets to clear the debt. was embroiled in a high-profile by authorities in the UK and the be no resolution.” An analysis of new cases dispute earlier this year with US, have lodged 79 sets of High He said a lot of cases had being filed with the High Court the Firstwood property part- Court proceedings this year. reached this point, leading to reveals enforcement activity by nership, involving television This compares to just seven the glut of proceedings current- vulture funds began to ramp up presenter Gay Byrne. in the same period last year and ly being witnessed. significantly in the final third The matter was eventual- 24 in all of 2016. Mr Stafford advised anyone of 2016 and that trend had ly settled amid allegations A Cerberus spokesman said dealing with a fund to seek to continued this year. Launceston appointed a receiv- it would not be commenting. do a deal with it rather than The figures come amid ongo- er even though the partnership’s A source working with one ignoring the issue, saying funds ing concern about how debtors loans were fully performing. fund said that having had were pragmatic, commercial are treated by vulture funds, The next most prolific fund possession of loans for two and seeking to do deals. with some debtors complaining has been Goldman Sachs, with to three years, the funds “They have no morality hang- about difficulties encountered two of its affiliates, Ennis Prop- were now dealing with the ups about debt forgiveness. Give engaging or negotiating with erty Finance and Kenmare portions of portfolios where them a deal and they will move such companies. Property Finance, filing 146 they believe they are getting on,” he said. Tracker mortgage scandal grows as 20,000 affected

Charlie Weston holders to the correct rates, and compensate them. a financial consultant, who Kissane (inset) said. “As far as we are aware, the Personal Finance Editor and compensate them. The tracker mess has been has been advising individuals However, he claimed some vast majority of customers At the end of 2015, the described as the largest wrongly moved off tracker Bank of Ireland staff who had been placed on the THE tracker mortgage Central Bank ordered 15 financial scandal to hit this rates has said he expects the members had not been wrong rate of interest have scandal is set to widen again. lenders to trawl through their country. At least 100 next update from the Central restored to the low interest now been put on the correct A leading expert now mortgage books to seek out mortgage holders lost Bank to reveal that at least home loans they were entitled tracker rate,” he said. expects 20,000 homeowners all those who have been their homes because 20,000 homeowners have to be on. As many as 2,000 But Mr McGrath said the to end up being restored to overcharged. of the tracker rate been hit by the scandal. Bank of Ireland staff had delay in paying customers trackers and compensated, Most customers issue. Tracker Padraic Kissane said: “The been incorrectly moved off back the money they were after being charged the have been restored to rates are set at a current figure is 15,000, but it tracker rates at one point. overcharged and paying them wrong interest rates. the correct tracker percentage over will rise to 20,000 and could Bank of Ireland insisted appropriate compensation Up to now it was thought rate, but the the European pass that.” anyone entitled to a tracker was completely unacceptable. that 15,000 mortgage holders majority of banks Central Bank, Most banks have restored has now got it back. “Can you imagine if the were affected, but there are have yet to refund and tend to be affected customers to tracker Fianna Fáil’s finance shoe was on the other foot at least 5,000 more victims. homeowners the far cheaper than rates, but only AIB, EBS and spokesman Michael McGrath and the bank realised it had It comes as the Central overcharged variable or Permanent TSB have also has written to Central Bank been undercharging a Bank is due this month to interest fixed refunded them over the governor Philip Lane calling customer for years? I don’t issue an update on the efforts rates. overcharged interest and on him to take a tougher line think it would be so shy in by banks to restore trackers Now compensated them, Mr with banks on the issue. seeking its money back.” METRO EDITION

IRELAND’SBEST-SELLINGDAILYNEWSPAPER www.independent.ie Wednesday 13 September 2017 €2.00 (£1.30 in Northern Ireland) C PatGilroy:Themanwho createdtheBlueMonster DonnchadhBoyleonthefoundationsofDublin’s success–SPORT

More pupils Now we’re going enjoy good grades in new Junior to have to work Cert English Katherine Donnelly

HIGHER numbers of pupils have scored above 55pc in the new-style Junior Certificate English written assessment. However, the overall number until we reach 70 achieving the highest grades across all subjects is down. More than 61,500 students receiving their results today are Budget tax cuts risk the first to experience changes in the junior cycle. English is the first subject overheating economy, to have undergone reform, but changes in other subjects will government warned be phased in over coming years. Education Minister Richard Kevin Doyle Bruton said it was “positive and encouraging to see the changes THE pension age should be raised to 70 to the junior cycle coming to and Budget Day tax cuts postponed, a fruition”. State-supported think tank says in a stark Ibec said it could be “the warning on an overheating economy. start of the single most radical The Economic and Social Research educational change in decades” Institute (ESRI) says any moves to further and called for similar changes stimulate economic activity could lead to in the Leaving Cert. Among those celebrating are four students who achieved Fiona Ness 12 top grades. However, the Retirement dreams number getting at least one A vanish as goalposts grade or distinction across all subjects fell to 21,833 compared are moved again P4 with 22,608 in 2016.

“the same overheating experienced prior We’re bottom of class to the 2007/08 financial crash”. > for depression: P14-15 It will today warn Finance Minister Paschal Donohoe that a “neutral Budget” is needed to maintain the progress of recent years. RTÉ pay row It advises the Government to consider- ing raising the pension age from 66 to 70, plan for a very sudden impact from Brexit, Broadcaster invest in social housing, and introduce a vacant site tax. leaves top In a presentation seen by the Irish In- dependent, the ESRI warns that planning stars out needs to get under way for dealing with an older population. Standing out from the herd of pay The ESRI believes “the costs of pop- ulation ageing could be offset fully by Nina Kiernan (10), Beth Healy (4) and Amelia Twomey (2) were at Dublin Zoo last night as it was announced the top review extending the pension age to 70”. family attraction would host a winter lighting spectacular called Wild Lights. Photo: Leon Farrell REPORT: PAGE 2 Full reports: pages 4-5

Recommended retail price of the Irish Independent in ROI is €2.00 (£1.30 in Northern Ireland) Frankfurt Motor Show ssppeecciialal Vol. 126 No. 219 Irish Independent MOTORS Thecarsyouwillbedrivingtomorrow 4 Friday 13 October 2017 Irish Independent BUDGET 2018

Smaller EU countries I’ll cut taxes gradually to fix unfair rates – Donohoe ‘need to join forces’ on n Minister says move corporation would safeguard jobs tax issue Kevin Doyle intention of taking more people IRELAND and other Group Political Editor out of the tax net. small European One in three employees cur- countries will meet IRELAND’S income tax rates rently pays no income tax be- next month to set out are “unsustainable” and will cause their earnings are low. their views to the be repeatedly reduced in the “I’m not going to put in place European Commission years ahead if Paschal Donohoe any move that’s going to narrow on corporation tax, remains as Finance Minister. our personal tax base,” he said. Finance Minister Just days after delivering his The Government of Fine Gael Paschal Donohoe has first solo Budget, Mr Donohoe and Independents has one more said. described the tax system as “not budget under the confidence It comes as the fair” and “not sustainable”. and supply arrangement with European Commission Acknowledging that the in- Fianna Fáil. wants to press ahead come tax and USC cuts in the Up to €3bn is expected to with a shake-up of Budget were small, he indicated be available for tax cuts and European tax rules to more will follow. spending increases in Budget standardise the way “What I’m saying here is that 2019, compared with the €350m that corporation tax is this is the first of a number of set as a base for next year. calculated, a move steps that we can afford over Mr Donohoe indicated that that is opposed by the long run. he believes the country will Ireland. “I do not want to be in a situa- start to lose jobs unless the tax Mr Donohoe said EU tion where the big tax cut of one rates are reduced – but this re- countries that have day is the savage tax increase of form will be on a gradual basis. similar views on the day afterwards.” “We did go through a pe- corporation tax need Mr Donohoe’s comments riod where, when we passed to come together to at the Independent News and a budget, the next morning make their voices Media Budget 2018 business people felt better-off. heard. breakfast are likely to draw He told a post-Budget criticism from some Opposition Atmosphere business event parties who believe he was “Colleagues were comparing the organised by wrong to introduce any tax cuts atmosphere in the Dáil to some Independent News & in the Budget. of the budgets in 2003 and 2004 Media that he would be Earlier this week, the minis- when the minister for finance attending a meeting ter announced plans to increase used to walk into the Dáil bar with “other small open the threshold at which workers and have his name chanted,” economies who believe pay the higher 40pc rate of he said. in the value of trade, income tax by €750 to €34,550. “When I walked into the bar and who believe in the He also reduced the two mid- in Leinster House on Wednes- value of European dle rates of the Universal Social day night, there wasn’t anybody Union law being Charge, with the net effect that chanting my name. impartially applied to a worker earning €55,000 will “The reason for that is that all”. be €6 a week better off from I was very clear that if we’re In his first Budget, January. making steps forward on taxa- Mr Donohoe reiterated “I’ve been crystal clear since tion, they have to be ones that his commitment to I took over this job that the key I can afford to do and that the ‘Health faces big challenge Ireland’s core offering thing I want to address in per- Irish economy can afford to of an open, transparent sonal taxation is the unsustain- do,” he said. and stable corporation able position that we’re in that Mr Donohoe was speaking in tax regime built on the if you’re on an average wage in front of an audience of industry Kevin Doyle are about resourcing”. and move it forward”. cornerstone of the this country you’re already on leaders which included business Group Political Editor “I am now crystal clear that “But I still put as much time 12.5pc corporate tax the higher rate of income tax,” magnate Denis O’Brien, KPMG the big challenge should be how against that department as it rate. Mr Donohoe said. managing partner Shaun Mur- FINANCE Minister Paschal money is managed and account- deserves because it occupies The move was warmly “We have to make progress phy, new Dublin Airport Au- Donohoe spends a quarter of ed for within the Department of such a large share of Govern- welcomed by the in this. It’s not fair, it’s not sus- thority chief executive Dalton his time dealing with the De- Health and HSE,” he said. ment expenditure,” he said. business sector. tainable that people I represent Philips, Permanent TSB chief partment of Health. In his Budget, Mr Donohoe Mr Donohoe told an audience Ireland’s low in my constituency who are executive Jeremy Masding, He intends to put a sharp fo- assigned a record €15.3bn to of business leaders that an corporation tax rate on very average earnings are Lidl Ireland chief executive cus on “corporate governance” health. extra €1.5bn has been pumped has consistently been a already on a marginal rate of JP Scally, former Fitzwilton in the coming year, because he He said Health Minister Si- into health in recent years “to bone of contention with taxation of between 46pc and chairman and INM director says “the case can no longer be mon Harris is “an absolutely deal with catch-up areas in some members of the 48pc.” Dr Len O’Hagan, and INM made that the challenges we brilliant young politician who investment”. EU. The minister said he had no Editor-in-Chief Stephen Rae. have in the Irish health service is working night and day to try “My key area of focus now,

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INVESTIGATES Irish Independent Friday 13 October 2017 5 BUDGET 2018 es gradually to fix unfair rates – Donohoe More farms may be spared stamp duty hike after backlash

Kevin Doyle backtrack on the measure, Mr and Margaret Donnelly QUESTIONS Donohoe added: “If I don’t address things like that now, it THE scope of exemptions avail- FOR CREED will create further difficulty for able for farmers to avoid the me in the future.” Clockwise from top left: Finance Minister Paschal Donohoe; Liam McDonnell with new 6pc stamp duty on land n Did he not know Irish Farmers’ Association Donal O’Donovan; Conor O’Brien and Kevin Cohen of KPMG; Mr Donohoe with Stephen sales could be widened to ease Paschal Donohoe was president Joe Healy said at an Rae and Dearbhail McDonald; Shaun Murphy with Mr Donohoe, Ray Gray, Dalton Phil- the backlash to the Budget including farmland IFA executive council meeting lips and David Meagher; Samantha McCaughren, Cormac Bourke and Colm McCarthy measure, the Irish Independent under his stamp duty yesterday that the old stamp has learned. hike? He told journalists duty of 2pc should apply to land However, the vast majority at his press briefing that going to active farmers. of buyers of land sold on the “we need to nail this”. “The Finance Bill, which will open market will now be facing be published next Thursday, a stamp duty bill of 6pc, up from n Did senior civil must provide for land that is 2pc before the Budget. servants in the purchased or transferred and Officials in the departments Department of used for farming, to remain at of Agriculture and Finance are Agriculture not know the 2pc stamp duty rate. considering changes to the rules that ‘commercial “The qualifying criteria for which allow inter-family sales property’ included this would be the same as Rev- to avoid the tax if the seller is farmland? It beggars enue currently applies to de- 67 years old or younger. belief how senior civil fine an active farmer for other It is understood the age could servants were not fully agricultural reliefs.” Mr Healy be raised – but at the same briefed on the changes. said this proposal is credible, time Finance Minister Paschal as it would limit the 2pc rate to Donohoe has confirmed that he n Do the minister and transactions where the land will was fully aware when writing his department not be farmed by active farmers. the Budget of the affect of the understand the There is still considerable tax change on farmers. farmland property confusion over whether deals Agriculture Minister Michael market? He has moved to already in process will be sub- Creed was caught off guard, and downplay the impact on ject to the higher rate. initially claimed the 6pc rate of farmers. A spokesperson for Mr Creed commercial stamp duty “does said there will be “transitional not apply to agricultural land”. n Will farmers buying arrangements in place for those However, he has now been land at the moment be with signed contracts”. definitively contradicted by affected? It remains In the Dáil, Fine Gael TD of how money is managed’ Mr Donohoe, who told the unclear whether farms Tony McLoughlin said he was Irish Independent there should currently in the process “concerned” about the stamp never have been any confusion of being sold will be duty and believes “it must be about the issue. “I was very affected by the changes. changed in the Finance Bill”. working with Simon, will be for within the Department of much aware of the definition Fianna Fáil’s Declan on corporate governance and Health and HSE.” of non-residential commercial is point to the broader Breathnach said: “While I rec- it will be about management Asked whether he believes property and everything that is context of where we ognise in particular that and expenditure within the politicians’ influence on the included in it,” he said. are. there are concessions HSE,” he said. health system should be re- Mr Donohoe said he purpose- “Stamp duty in re- for young farmers in In a warning shot to health duced, he said: “There does ly referenced the young trained lation to commercial the consanguinity rights managers, he added: “I’ve now have to be political choice but farmers’ relief scheme which property is 2pc. If on transactions, small been a member of the Cabinet the nature of corporate govern- exempts purchasers under 35 you compared it to to medium farmers buy- sub-committee on health for ance and how choices are made from normal stamp duty and the UK it’s 5pc, we ing lands to expand their nearly a year and a half, and I’m within our hospital groups is the consanguinity rate of 1pc. used to be at 9pc.” farms should get a now crystal clear that the big something that will be one of “I am, of course, aware of the In a clear concession in challenge should be how mon- my main areas of focus next concerns of people who repre- signal that any discussion ey is managed and accounted year.” Health Minister Simon Harris sent farmers. What I have to do he will not post-Budget.”

In Sport,Martin And there’s a FREE Lego Brehenylistshurling’s Ninjago mini-figure top 50 performers of exclusively at Lidl. the year, Vincent Hogan asks can Pat Gilroy really turn his hand to managing Dublin hurlers, and a year on from Anthony Foley’s sudden passing, AlanQuinlan recalls his friend’s influence on Munster. METRO EDITION

IRELAND’SBEST-SELLINGDAILYNEWSPAPER www.independent.ie Thursday 19 October 2017 €2.00 (£1.30 in Northern Ireland) Whymy Cheatingnowthe favourite norminrugby wordisNo NeilFrancis– SeeSport BairbrePower Beaumont Hospital ‘warzone’ to get new €40m A&E

Kevin Doyle The move should relieve HSE’s Capital Budget for 2018 seen a letter dated October 12 patients each year. ever-increasing number of pa- Group Political Editor pressure on what has been one will also pacify Independent Al- in which the HSE advised the It also receives patients for tients being treated on trolleys. of the country’s busiest A&Es liance minister Finian McGrath CEO of Beaumont Hospital Ian Neurosurgical Assessment from Last winter patient organisa- A NEW €40m Emergency and at the centre of hospital who had demanded the new ED Carter that an initial €100,000 other hospitals throughout the tions described the overcrowd- Department has finally been crises on countless occasions in his constituency as payback will be made available next year country. ing situation in Beaumont as approved for Beaumont Hos- in recent years. for supporting Leo Varadkar’s for “design team fees”. However it has been plagued “akin to a warzone”. pital, the Irish Independent The decision to include the minority Government. The existing ED provides by problems in recent years as can reveal. long-awaited project in the The Irish Independent has services to in excess of 50,000 staff struggled to cope with the Full story, Page 22

‘She was born in the storm... but we’re not naming her Ophelia’

BABY Maria sure knows how to make an entrance – just as Storm Ophelia was at its most ferocious. Her mother Sonya Burke had to be rushed from her home in Crosshaven to Cork University Maternity Hospital by ambulance at the height of the storm on Monday morning. However, Sonya has insisted that she won’t be calling the new tot Ophelia to mark her dramatic entrance to the world. Mother and daughter remain in hospital as their home is still without power and water due to the storm. Meanwhile, thousands of farmers across Munster are struggling to run their farms without power. Dairy farmers are among the worst hit and are trying to hire generators to power their milking parlours. Report: Pages 2-5 Photo: Mark Condren Tracker scandal banks told: fix it or face levy

Charlie Weston “scandalous” after it emerged If the Government does not REPORTS AND ANALYSIS: Personal Finance Editor that lenders were actively frus- MORTGAGE OUTRAGE see results before the year ends, PAGES 8 & 28-29 trating the efforts of regulators. Banks understand only one it will provide the Central Bank THE Government has threat- The Government is devising with enhanced powers or will ened to hit banks with massive a plan to hit banks with steep thing – so hit their bottom line increase taxes on the banks. But Recommended retail price of the Irish Independent tax bills if they do not restore tax increases, after the Central Charlie Weston, Page 8 at the moment, banks like AIB, in ROI is €2.00 (£1.30 in Northern Ireland) mortgage customers to their Bank watchdog was accused Bank of Ireland and Permanent Vol. 126 No. 250 Irish Independent tracker rates before the end of of failing to use all its powers TSB will not have to pay any tax the year. to resolve the tracker scandal. with them and they must re- were forced on to higher inter- on profits for decades to come Taoiseach Leo Varadkar said Mr Varadkar warned the store the low-cost mortgages to est rates after the banks refused because they are sitting on the behaviour of the banks was banks that he is losing patience at least 13,000 borrowers who them the right to a tracker. multi-billion euro “tax losses”. 8 N Thursday 19 October 2017 Irish Independent News HOW TO Fresh hope for families in TELL IF tracker loans nightmare YOU ARE AFFECTED n Varadkar threatens massive tax bills for lenders over mortgage scandal THOUSANDS of people may be entitled to a good-value Charlie Weston tracker mortgage, but may and John Downing ‘AIB decision not even be aware of this. FAMILIES have been given is costing me Q: Have the banks fresh hope that their tracker identified all the people nightmare will end this year, €500 a month’ wrongly denied a tracker? after the Government threat- A: Banks have still not come ened to hit banks with massive up with a comprehensive list tax bills if they do not rectify GARETH Murphy is unable to get of all those wrongly denied a the mess. AIB to agree to put him on the tracker, at least not to the Taoiseach Leo Varadkar said right tracker rate. satisfaction of the Central the behaviour of the banks was A married father of two young Bank. “scandalous” after it emerged boys, he reckons the failure of that lenders are actively frus- AIB to put him on the tracker Q: Could I have been trating the efforts of regulators. rate he says he is entitled to is affected? The Government is devising costing him €500 a month. A: If you were offered a a plan to hit banks with steep He bought an apartment in tracker when you took out tax increases, after the Central 2007, but has since moved out your mortgage, but have Bank watchdog was accused and is renting a larger home for since lost it, you may well of failing to use all its powers his family. have a case to get it returned to resolve the trackers scandal. “I moved out in 2011 and we to you. You will also be Mr Varadkar warned that the are renting. The failure of AIB to entitled to a refund of the Government is losing patience offer me the correct tracker rate overpaid amount and with the banks, who must re- is costing us €500 a month. We compensation, usually a store the low-cost mortgages can’t afford to save for a deposit percentage of the refund to those who should never have for a house,” he says. amount. been deprived of them. Mr Murphy, who is a lawyer If the Government does not in a Dublin software company, Q: How would I find out if I see results before the year ends, bought an apartment in am entitled to a tracker? it will provide the Central Bank south Dublin in 2005 and A: Check out if your initial with enhanced powers or will re-mortgaged in 2007 with a mortgage offered the tracker increase taxes on the banks. top-up additional mortgage to option. People often moved At least 13,000 borrowers buy out his girlfriend after their off trackers for a while were forced on to higher in- relationship broke up. because they fixed when terest rates after their banks Both loans were on a tracker to fix for three years. When this ended in 2014, AIB He appealed to the Central European Central Bank rates refused them their right to a interest rate set at a 1.1pc After the drop in the ECB rate said he could go back to a tracker, Bank. rose, but were then denied a low-cost tracker. margin over the European following the crash, he broke out but at a margin of 4.91pc over the He is now hoping that return to the tracker rate. But at the moment, banks Central Bank (ECB) rate. of the fixed rate in 2008 – but ECB rate. the Central Bank can force Dig out the original like AIB, Bank of Ireland and He opted to go on a tracker was told by the bank he was not He wrote to the bank in March the lender to put him on his contract. Your solicitor may Permanent TSB will not have rate on one loan and a fixed rate entitled to go to the low-margin last year when he heard that AIB good value tracker, so he and have it, if you cannot find it. to pay any tax on profits for for four months on the other tracker. was setting aside €190m to deal his family can get the funds Alternatively, make a data decades to come because they loan, after which (in September By 2011 AIB’s variable rates with tracker cases. together to buy a home. request to your lender for a are sitting on multi-billion euro 2007) he was offered a 1.1pc had reached 4.75pc, so he fixed But the bank would not put him But for now the fight goes on, copy of the original contract. “tax losses”. tracker margin, but he opted again for three years. on a tracker at a 1.1pc margin. he said. There was previously a cap Q: I got a tracker back, but that restricted their use of at a very high rate. What “deferred tax assets” to just Some €2.2bn of this could no to deal with the scandal. compensation in cases where financial loss and great hu- can I do? 50pc of their corporation tax longer be used to offset against Governor of the Central Bank they do agree a tracker should man suffering, and called on A: Some lenders are putting bill, meaning the other 50pc their tax bills if there is a return Philip Lane is due before the be returned. the Central Bank to name the people back on trackers, but would still have to be paid to the system in place before Oireachtas committee on the They are putting some cus- two banks that had behaved at margins so high they would every year. 2013. matter today. tomers back on trackers, but especially badly. be better off on a variable. The policy was changed in Mr Varadkar said: “It’s very Mr Varadkar was responding on margins so high they might Chairman of the Oire- Take up this issue 2013 when the cap was scrapped much in the interest of the to a new progress report from as well be on a high-cost vari- achtas Finance Commit- with the bank, and in its entirety. In one stroke banks, their shareholders and the Central Bank, as part of able rate. tee John McGuinness also the Central Bank. then-finance minister Michael staff to fix this problem, and fix its efforts to get 15 lenders to It has also been revealed that said politicians were You could also engage Noonan gave banks the ability it quickly.” review their mortgage books. up to 100 families lost homes open to strengthening financial adviser to completely offset all corpo- Finance Minister Paschal The report found lenders because of banks’ failures. the regulators’ powers, Padraic Kissane, who ration taxes. Donohoe will call in the heads are refusing to acknowledge Labour leader Brendan How- but it was not using all specialises in Reversing this move is within of the main banks on the large numbers of people that lin said the Central Bank had of the sanc- tracker-loss the Government’s power and trackers issue next week. regulators reckon should never been investigating this issue for tions at its cases. would prove hugely costly as The minister is also meeting have lost a tracker. two years, but the delays were disposal at three banks have a combined with the Central Bank to see if Banks are also making unacceptable. the mo- Leo €4.45bn in deferred tax losses. it has all the powers it needs “unacceptably low” offers of He said people had suffered ment. Varadkar Banks understand only one thing – so hit their bottom line

Charlie Weston of people to good-value Patience is wearing thin so high they will not have to tracker mortgages. with the banks at this stage. pay corporate tax for The Central Bank issued a They are obviously unaware decades. T IS way past the time that progress report on its efforts just how hated they are by all But a change in the law by a big stick was used to to get 15 lenders to pore over and sundry. the Government could limit Ibring the banks to heel. their lending books and Taoiseach Leo Varadkar the tax write-offs. This would And a threat to make report back on realistic has now threatened the cost the banks billions of banks pay more tax may just numbers for those wrongly bottom line of banks. euro. be the stick that is needed to denied the low-cost rate. Banks have what are called The Taoiseach has set a put manners on the lenders. It makes depressing deferred tax assets. This deadline of the end of the Taxpayers have reacted reading as shot through it is means if they lost money in year for the tracker mess to with fury to revelations this evidence that the banks the past they can write off be sorted out. week that the banks have continue to treat the these losses in future. Watch now as the banks been deliberately stalling regulators, their customers In the case of AIB, Bank will start paying attention. efforts by the Central Bank to and the taxpayers who bailed of Ireland and Permanent The only hit that hurts is get them to restore thousands them out with contempt. TSB, the previous losses are the one that costs money. METRO EDITION

IRELAND’SBEST-SELLINGDAILYNEWSPAPER www.independent.ie Friday 20 October 2017 €2.00 (£1.30 in Northern Ireland) C LEINSTER Artsand craftshaven RUGBY for €2.25m 8-PAGEMAGAZINE FREEINSIDE PROPERTY +FULLDETAILSOFGAAPROVINCIALCHAMPIONSHIPDRAWS SEESPORT

Now country Central Bank boss on ‘weather bomb’ alert Ralph Riegel

AFTER enduring a ham- mering from Hurricane Ophelia, parts of the coun- to tracker victims: try are now on high alert for flooding and high winds amid warnings of a “weath- er bomb”. Met Éireann has issued two Status Orange warnings and three Status Yellow warnings as Storm Brian ‘You’reon your own’ is set to strike the country later today. Brian will spell further misery for tens of thousands of households still without electricity and water fol- lowing Ophelia on Monday. n Lane tells distraught Orange wind warnings have been issued for Wexford, homeowners to go to Clare, Cork, Kerry, Water- court or ombudsman ford, Galway and Mayo. Full story, Pages 10-11

Charlie Weston and Cormac McQuinn THE Central Bank has been accused of desert- New type of ing victims of the tracker mortgage scandal by failing to use its powers to force banks to return trackers to those who lost them. pasta prevents Governor Philip Lane told an Oireachtas committee it was asking banks to write to heart attacks people they refuse to give trackers back to, and told victims they can go to the courts or Nick Squire the ombudsman. Sinn Féin’s Pearse Doherty accused the Scientists in Italy have de- Central Bank of a dereliction of its duty and he veloped a new type of pasta asked why the regulator will not use the 2013 that can help ward off heart attacks. Charlie Weston The new pasta, which is being touted as benefi- Central Bank no longer cial to well-being, is made fit for purpose and boss from a mixture of standard durum wheat flour mixed Lane out of his depth P4 with whole-grain barley flour, which is rich in a fibre powers it was given to ensure these people get called beta-glucan which redress as they are being overcharged now. enchances the growth of The Central Bank was “the dog that doesn’t new blood vessels. bark”, Mr Doherty said. Prof Lane said the Those blood vessels then focus is on getting the banks to restore and form “natural bypasses” in refund people voluntarily. the event of a heart attack, The head of financial conduct at the Central say the researchers in Pisa. Bank, Derville Rowland, revealed she has been informing gardaí about its examination Full story, Page 12 of taking customers off trackers. The Central Bank warned there will be “substantial” num- Recommended retail price of the Irish Independent bers in addition to the 20,000 tracker-denial in ROI is €2.00 (£1.30 in Northern Ireland) cases already disclosed. Fianna Fáil’s Michael The youngest swinger in town Vol. 126 No. 251 Irish Independent McGrath said the ultimate cost of redress and compensation could top €500m. A baby orangutan rests in its mother’s arms at Singapore Zoo. The zoo houses the largest captive colony of orangutans in the world. Photo: Edgar Su Full story, Pages 4-5 4 Friday 20 October 2017 Irish Independent News Tracker scandal Central Bank is ‘dog that does not bark’ on track

Charlie Weston the courts or the ombudsman. man, or the courts. He asked The head of financial conduct who believes they have been However, TDs were aghast and Cormac McQuinn The governor revealed there why the regulator will not use at the Central Bank, Derville affected by the tracker scandal, to learn only two on-site in- are large numbers of mortgage the 2013 powers it was given to Rowland, revealed she has been but who has not been contacted, spections of banks denying THE Central Bank has been holders that the Central Bank ensure these people get redress informing gardaí about its ex- to complain to their bank. customers the return of trackers accused of a dereliction of its feels should have their tracker as they are being overcharged amination of taking customers The Central Bank warned have been carried out by the duty in failing to use its pow- mortgage returned. now. The Central Bank was off trackers. there will be “substantial” num- Central Bank. ers to force banks to give back The banks are disputing “the dog that doesn’t bark”, Mr The Central Bank has had bers in addition to the 20,000 The committee heard just trackers to those who lost them. these cases. Doherty said. two meetings with gardaí on tracker-denial cases already 26 of the close to 2,000 staff in Governor Philip Lane told But Sinn Féin’s Pearse Do- Prof Lane said that would the tracker scandal, but no disclosed. the Central Bank are working an Oireachtas committee it was herty accused the Central Bank be a lengthy legal process, and formal report has been made. Financial adviser Padraic full-time on the tracker redress asking banks to write to people of a dereliction of its duty by the focus now is on getting the It was more of an information Kissane has estimated up to process involving 15 lenders. they refuse to give trackers back telling people refused tracker banks to restore and refund exchange. 30,000 will eventually emerge Prof Lane described the to, telling them they can go to refunds to go to the ombuds- people voluntarily. Ms Rowland advised anyone as the final number. examination as “the largest,

More excuses and Life in tent no real answers – village for ‘invisible’ so don’t bank on victims of any quick solution the crisis Nicola Anderson

HIGHLY irritating THEY came to Ireland buzzing sound Charlie during the boom as part of was a constant the wave of Polish workers problem when Weston seeking a better life. ACentral Bank Now they are forced to Governor Philip Lane live in a tent village on the addressed the Oireachtas banks of the Royal Canal – Finance Committee on the part of the hidden human tracker scandal yesterday. toll of the worst housing Everyone in the room was crisis in the history of the repeatedly asked to switch State. off their mobiles and other Three Polish men who devices. So bad did the have lost their rental homes interference to the sound are among the inhabitants system become in committee of around 14 tents currently room two that at one stage erected at the rear of chairman John McGuinness co-operate with the tracker Mountjoy jail. decided to suspend the restoration and refund They said they feel meeting. It was at this point scheme. “invisible” in an Irish he realised his iPad was the Politicians were stunned society that looked for their culprit. It was on and this when Prof Lane said he could work in the good times – but was affecting the sound do nothing if banks dispute turned a blind eye when system, creating the the right of a homeowner to they fell on hard times. crackling and buzzing. have a tracker returned to Tadeusz Iguatowicz has a The failure of the governor them, even when regulators serious heart condition but to realise he needed to turn feel tracker restoration was refuses to leave the streets off his device could be a appropriate. because he cannot find a metaphor for Prof Lane’s Prof Lane said anyone hostel which will allow him have is a goldfish,” he said. place for seven years while This went against him and performance and that of his whose bank will not give to keep his beloved dog – all He displays a letter from claiming disability allowance he did not receive any team before the committee. It them back a tracker could he has now that his wife a landlord testifying as to – but fell behind in rent after benefits for nine months. was a car crash. take a case to the courts or died in Poland six years ago. his good tenancy. he applied for a jobseeker’s He has been on the housing He has form. When he last the financial ombudsman. “The maximum the Tadeusz ended up allowance as he wanted to list for nine years. appeared before the The parcel was being passed hostels will allow you to homeless after renting a work. Tadeusz stayed in his tent committee in December, he to other State bodies. had to request a short You are on your own if the adjournment because he was bank digs its heels in, was the not briefed on the tracker message. issue. This is giving the banks a Banks might respond to Leo’s threats w The failure of the Central free pass. They just have to Bank to grasp the seriousness dispute a claim for tracker of the tracker rip-off is restoration and the Central probably not surprising given Bank puppy will roll over. HERE is some the Pope of Rome have?” There is no lack of political its woeful record on It is clear the Central Bank disagreement about John Stalin asked rhetorically. agreement about consumer protection, but is not fit for purpose. Prof precisely when, how In real terms, it pits moral fundamental injustices that does not mean it is not Lane appears out of his and to whom, the Downing force against the cold reality involved here; there is a huge Tmurdering Soviet of might. The Irish lending political imperative that shocking, unforgivable and a depth, and the Central Bank dereliction of duty. is having rings run around it tyrant, Joseph Vissarionovich agencies, now in the gap of “something must be done”. Prof Lane and his senior by the banks and their armies Stalin, actually said it. danger for abusing tracker But paraphrasing Stalin, staff repeatedly told the of lawyers. It is time the But the main point is clear mortgage holders, do not the banks and building committee the Central Bank European Commission and it has resonance for the have ranks of armed soldiers. societies may well ask: “What did not have the powers to competition authority raided current tracker mortgage But, experience teaches us laws do Leo Varadkar and compel banks to compensate our banks, just as it did to put farrago. When Stalin was that the banks more usually Paschal Donohoe actually affected customers as manners on the insurance asked how his genocidal, have recourse to law, early have here?” legislation allowing this only industry. The Central Bank repressive policies might play and often. The Taoiseach Mr came in around 2013. has forgotten the impact on morally with the head of the There is a certain Stalinist Varadkar used his trademark Lots of excuses were given ordinary people of its failure Roman Catholic Church, who resonance for the ongoing candour to condemn the for not going after the banks. to take a tougher stand. had true believers all across scandal about the banks’ banks’ abusive actions in The process was in danger So come, friendly EU the Soviet territories, the ill-treatment of people so recent days inside and of becoming bogged down in raiders, and fall on the dictator of the USSR from the peremptorily deprived of outside the Dáil. He said the legalistic arguments. So Central Bank, it isn’t fit for 1920s to 1953, was more than tracker mortgages with huge Government had lost attempts were being made to consumers now. Not that it dismissive. financial, personal and patience and would turn up get the banks to voluntarily ever has been. “How many divisions does family consequences. the heat. Irish Independent Friday 20 October 2017 5 Tracker scandal News Central Bank is ‘dog that does not bark’ on tracker scandal

most complex and significant people for the loss of trackers “Isn’t it the case that banks the greatest consumer rip-offs Michael Noonan brought the conduct review that we have from 2013 on, and could not took money fraudulently? On in our State”. banks in over mortgage arrears undertaken to date in the con- impose sanctions for actions request they did not return the Meanwhile, Taoiseach Leo and that “arrears have been text of our consumer protection before then. money. You could describe that Varadkar rejected suggestions falling very substantially in mandate”. Banks were being urged to do as stealing money from people. that the Government is pow- Ireland in recent years”. But he repeatedly refused the right thing by their custom- “It is a question of grand theft erless to force the banks to He said he is open to new to say if he needs extra pow- ers, the Central Bank boss said. from thousands of people, and act when asked about Paschal laws and additional taxation to ers, before eventually saying Committee chairman John the banks did not return it.” Donohoe’s intention to haul in address the tracker mortgage the regulator’s powers were McGuinness described the Fianna Fáil finance spokes- the banks and admonish them issue but that “all those things sufficient. tracker scandal as grand theft. man Michael McGrath said the over the scandal. actually will take too long”. Politicians were told the Cen- “If I go into a shop and steal ultimate cost of redress and Mr Varadkar argued that He added: “The banks have tral Bank only got powers to a pair of socks I’ll probably be compensation could be more former Taoiseach Enda Kenny it in their power to sort this order lenders to compensate in court next Tuesday,” he said. than €500m, making it “one of and former finance minister out within a matter of months.” Govenor Philip Lane

Tents where homeless peo- ple including Adam Kakow- Few ‘affordable’ czyk and Tadeusz Iguatowicz live along the Royal Canal. Photo: Colin O’Riordan

during the recession and has been homeless since homes for under 2009. He is angry at the housing situation – but says he still loves this country. “It is my home more than €280,000 despite Poland,” he explained. “Two guys passing by here offered me to live for free in the countryside – in Co Kerry,” said Adam. “Strangers are doing State funding more than the guys who are supposed to be looking after the homeless. It’s big business for these people,I EXCLUSIVE Murphy said there was either think,” he says. a “proportionate reduction” Sebastian Sobok, who Paul Melia Landlords hit across all houses in each devel- suffers from epilepsy, has a Environment Editor opment, or a specified number job in a processing plant by tax ruling of homes which would benefit and also lives along the FEW “affordable” homes devel- from a larger price cut. canal – pointing out that he oped using State funding will LANDLORDS were not entitled “The approved projects out- cannot live in a hostel be sold for less than €280,000 to offset the €200 second- side Dublin are likely to have because, as a night worker, in the capital, it has emerged. home tax against rental income new homes for sale towards he needs to sleep during the While housing schemes facili- from their properties, the Court the lower end of the bands day but hostels do not tated with public money outside of Appeal has ruled. identified by the deputy, while permit this. Dublin will include units costed Landlord Thomas Collins the projects in Dublin are likely His girlfriend, Anna at less than €280,000, most will had applied to deduct the to have starter homes available Szymanska, suffers from be above this price threshold charge, levied between 2009 towards the middle and upper deep depression and has in Dublin, the Department of and 2013, on each of six rental end of these bands,” Mr Mur- previously attempted Housing has said. properties he owned, but the phy said. suicide. She is currently This means that families with Revenue Commissioners Mr Ó Broin said it appeared living in a hostel and joint incomes of up to €80,000 said the charges were not no homes at “genuinely afforda- blames herself for her own will find it difficult to afford deductible against income. ble levels” would be delivered. during Storm Ophelia. “It the hope of affording rent. homelessness, saying she any of these units under Central He appealed, and an Appeals “It appears that there will be was OK,” he shrugged. He came to Ireland at the had “bad relationships”. Bank lending rules that limit Commissioner held in his no homes at genuinely afforda- Also on the housing list for age of 17 as a butcher’s “It is very difficult,” she mortgage borrowings to 3.5 favour, but the case was sent ble levels in Dublin, between nine years is Adam apprentice as well as working said of her current life. times income. to the High Court to decide on €170,000 and €260,000,” he Kakowczyk (30), who has a as a hostel receptionist. But there is nothing left The latest data from the Cen- legal issues. said. “The situation outside job and is saving money in But he lost those jobs in Poland to go home for. tral Statistics Office shows that The High Court ruled it was Dublin is less clear but still very the median, or average, price deductible, but the Court of concerning.” paid for a new home in the State Appeal has now held that a He said the Government had currently stands at €284,999. In pre-condition for deductibility previously said that funding Dublin, it’s €329,604. required that the charge be would not be approved for Banks might respond to Leo’s threats with ‘you and whose army?’ Last March, the Government “levied” by a local authority. schemes that did not deliver announced a €226m Local In- The court said it was imposed units at affordable prices. frastructure Housing Activa- by the Oireachtas, and not a “I am calling on Minister tion Fund to be used to build local authority, so could not be Murphy to honour this commit- Mr Varadkar created threats about a tougher bank seriously out of their depth roads, bridges and other ser- deducted against income. ment and not fund private de- momentum in this scenario. levy to fund reparations to here. vices needed to open sites for Several other cases raising velopments with public money He suggested that remedies the estimated 30,000 tracker There is more than a development. In return for the similar points were awaiting the unless they have homes for sale were imminent. mortgage holders who were suggestion that the real cash, developers had to provide outcome of the appeal. below €160,000 in Dublin and Next week the Finance so cruelly ill-used. awfulness happened in the social and affordable housing. at appropriately lower levels Minister Mr Donohoe will A short while earlier, the years after the crash of 2008. In response to a parliamen- outside the capital,” he added. carpet the banks and tell TDs and senators of the There is a law relating to this tary question from Sinn Féin’s Meath (€279,537), Waterford The Department of Housing them what he thinks of their Oireachtas finance which dates from August housing spokesman Eoin Ó (€186,787) and Westmeath said developers were asked to reprehensible behaviour. committee were told by 2013. But laws in this realm Broin, the department con- (€297,499). No projects have make homes “more affordable”. There is talk of toughening senior Central Bank officials are rarely retrospective. The firmed that final approval had yet been approved in Dún If they were required to deliver laws and even an increased that An Garda Síochána was noises off here are about been given for 22 of 34 projects Laoghaire-Rathdown, where units for under €280,000 in bank levy to fund on the case. Our now “moral pressure” on the in line for funding, which will house prices are among the Dublin, it would have made compensation and beleaguered police force has banks. What kind of result deliver 11,880 units of which most expensive in the State. development “impossible”. restitution. a proud record – but never in does recent history indicate 2,200 will be social homes. Mr Ó Broin asked how many It added that Dublin local Under pressure from these realms. we may expect from this? The developments are lo- homes on each approved site authorities had been asked to Fianna Fáil’s public spending Indeed, the Central Bank’s The reality is that the cated in Cork, where new would be sold for less than provide “as much affordability spokesman, Dara Calleary, in brightest and best, tasked lenders may well take a leaf homes average €289,950 ac- €260,000; between €261,000 as possible” on sites in areas the Dáil, the Education among other things with from Stalin’s book and ask: cording to the CSO; Dublin, and €280,000; between including Kilcarbery and Ad- Minister, Richard Bruton, defending citizens from the “Show us all your laws?” This Kildare (€308,999), Kilkenny €281,000 and €300,000; and amstown in South Dublin, and while speaking for the banks’ view they make and is all a high-risk issue for the (no price available), Limerick €301,000-€320,000. it was “confident” of securing Government, repeated enforce all the rules, appear Government. (€223,951), Louth (€242,500), Housing Minister Eoghan affordable units in other areas.