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O’ROURKE WANTS LEGAL AID FOR THOSE HIT BY TRACKER SCANDAL

Frank O’Rourke TD says the Government must do more to secure a better deal for mortgage holders from banks operating in Ireland and should provide legal aid to those that are currently in dispute with the banks in relation to the tracker mortgage scandal

“The latest examples of bank customers caught up in the tracker mortgage scandal, reports that profits in banks here are three times the EU norm and the interest rates that the banks charge their customers in Ireland are the highest in the EU, are all examples of the how the banks operating here are not giving their customers fair play.”

“As I said earlier this year, for example, the interest rate on all new mortgages, fixed and variable, stood at 3.3% in June compared to a Euro area rate of 1.83%. This means that a borrower with a mortgage of €200,000 is paying €250 per month more than they would be paying in the average Euro area country.” Continue reading “O’ROURKE WANTS LEGAL AID FOR THOSE HIT BY TRACKER SCANDAL”

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O’ROURKES URGES GOVT TO TACKLE PENSION EQUALITY

Frank O’Rourke TD has called on the Government to review the gap in State Pension pay between men and women, which is currently unfair, and a road map should be proposed for dealing with this inequality.

Frank explained that the current State Pension Scheme hampers women’s ability to qualify for the State Pension. He said that only 16% of women qualify for the full pension and are receiving around €35 less per week in their pensions.

Frank said, “The 2012 band changes, made by the previous Government, to how State Contributory Pensions are calculated have had a detrimental effect on over 35,000 people, including 23,000 women.”

“Time taken out of the workforce and careers, by women, to care for their children or their loved ones, is time lost paying into a pension. This is an unfair situation.”

“I have received many calls to my constituency office in relation to this issue. The Government must now set out a road map to end this unfair situation. The desired impact of our Dail motion last week is quite clear – equality of treatment between men and women in relation to pension contributions.”

“There is now an urgent need to provide an incremental pathway to address the pension anomalies through the Social Insurance Fund. Men and women should be treated equally in terms of their State Pension payment. I will continue to liaise with my colleague Deputy Willie O’Dea our Spokesperson on Social Affairs on this issue,” concluded Deputy O’Rourke.

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O’ROURKE URGES OPENING UP CAR INSURANCE MARKET TO EU

Frank O Rourke TD has called on the Government to consider opening up the EU Car Insurance market for Irish drivers, following the unprecedented increase in car insurance premium in recent years

‘The most recent figures on motor insurance, show premiums have raised by almost 40% in the last year, as the underlying rate of inflation stands at 0.5%. In fact the main cause of this 0.5% inflation relates to the rising cost of insurance overall.’

‘It is not unusual for young people in their early 20s to be asked to pay anything between €6,000 and €12,000 a year for their car insurance. This premium level is not an option for many young people, many of whom require cars for their educational, work or family purposes, as I have established at my clinics in recent weeks.’

‘I know from liaising with my colleague Deputy Michael McGrath, that the claims which are being paid out have reduced in recent years, from claims paid out of €1.5 billion in 2011 to claims paid out of €1.01 billion in 2014. Insurance companies have also returned to profitability. This should have led to reduced premium costs not increased premiums.’

‘I raised this matter in the Dáil recently and called on the Government to re-establish the Motor Insurance Advisory Board (MIAB). Given the track record of the MIAB in the past, it seems to me to be an imperative action for this Government, if we are going to make progress on reducing the motor insurance costs.’

‘I also believe that we should look at opening up the insurance market to the EU, whereby, we could purchase our insurance in Germany or France and that it would cover our driving in Ireland. This would have the effect of increasing competition in the market and should reduce premiums from their current high levels.’

‘Rising cost of insurance reduces net income available for people to spend on other life’s essentials and is key driver to increasing the cost of doing business in Ireland. As I said in my Dáil contribution, there is little point in the modest reduction in the USC in the last budget being transferred to enhance the profit of the Insurance companies.‘ concluded Deputy O’Rourke, who is committed to raising the issue in the Dáil again in the next session.

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O’ROURKE SAYS IRISH MORTGAGE RATES HIGHER THAN EU

Mortgage Rates in Ireland remain dramatically out of line with rates charged elsewhere in Europe, according to Fianna Fáil’s Deputy Finance Spokesperson, Frank O’Rourke

Frank stated, “Recent Retail Interest Rate statistics published by the Central Bank show that mortgages rates are falling in Ireland. However, they are not falling at the same pace that deposit rates are falling”

“These statistics published by the Central Bank recently show that despite modest reductions in mortgage rates, Irish mortgage holders are continuing to pay dramatically more than consumers elsewhere in Europe.”

“For example, in Ireland, the interest rate on all new mortgages, fixed and variable, stood at 3.3% in June compared to a Euro area rate of 1.83%. This means that a borrower with a mortgage of €200,000 is paying €250 per month more than they would be paying in the average Euro area country. That is €250 a month, each and every month, which could be spent by families on other household necessities. There has yet to be a credible explanation for such a dramatic difference in the rates charges and it is depriving our economy of much needed money which could be spent more productively in our economy”

“In May 2016, a Fianna Fáil Bill designed to give the Central Bank powers to tackle excessive variable mortgage rates passed second stage in the Dáil. The progress of the Bill through the legislative process has been tortuous and painfully slow. Despite not opposing the Bill at second stage, it is abundantly clear the Government does not want the Bill to become law.”

“As I have said in the Dail on a number of occasions, we must focus on reducing the cost of living as well as reducing the burden of taxation. There is little point in reducing tax rates, if the banks are continuing to charge excessively high variable mortgage rates or insurance companies are continuing to increase their rates, taking back a multiple of any reduction in taxation.”

“However, key elements of our Bill on mortgage rates will proceed when the Dail returns next month which will be of help in relation to securing fairer mortgage rates in the Irish market,” concluded Deputy O’Rourke.

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LAWLESS RAISES RETURNING EMIGRANTS’ INSURANCE WOES

In a recent Dáil debate on soaring motor insurance costs James Lawless TD called on the Minister for Finance Michael Noonan T.D. to examine the issue whereby emigrants returning home from other European Union countries are unable to secure motor insurance back home in Ireland

James Lawless TD, “I have encountered a number of situations in my clinics which are crucial to this debate. One is the situation of emigrants returning from abroad. Thanks to the putative economic recovery we are beginning to see some people returning home. Many people spent the recession abroad, including in the EU. One individual approached me recently who, on his return from spending six years in Spain, found that he was unable to get insurance cover in Ireland. He has a clean driving history and a full no-claims bonus, but it is non-transferable even within EU states.”

“Surely within the EU we could align our no-claims bonus provisions and driving history to the extent that we should be able to address such cases. I ask the Minister to examine that issue. Hopefully, it will be presenting more frequently as many more people return home after working abroad.”

“It now falls to the Minister to move on this issue and I will continue to raise it to enable returning emigrants live up to the EU promise of freedom to work, travel and live within the union without coming up against as basic a blockage as this on an individual’s budget.”