The Irish Minister for Further and Higher Education has strongly criticized banks in the country for their sluggish response in increasing interest rates for savers. Simon Harris condemned the financial institutions as “completely lacking in progress” and stressed that it was “unacceptable” for banks to attempt a dual approach in certain cases.
Harris asserted that it was unfair that while some banks justify raising mortgage interest rates due to wider rate increases, savers, including pensioners and parents who diligently set aside small sums week after week, were not benefiting from similar interest rate hikes on their savings.
While there have been some modest improvements in the offerings for deposit holders by banks, these higher rates primarily target regular saver accounts or fixed-term accounts where funds are locked away for a specific duration. On the other hand, standard deposit and current accounts still attract meager rates of interest.
Harris deemed it “highly disheartening” that Irish banks were lagging behind in passing on benefits to depositors in terms of interest rate adjustments. He expressed concern for individuals in the country who feel taken advantage of by certain financial establishments.
The Minister also welcomed the retention of the banking levy and announced that the Government would conduct a comprehensive review of its scope and impact ahead of the upcoming budget. This levy was implemented in the aftermath of the global financial crisis to ensure that as banks regain profitability, taxpayers also partake in the benefits of this resurgence.
Last week, the average interest rate for new mortgage arrangements in Ireland surpassed the 4% threshold.
In response to Minister Harris’s remarks, a representative from the Banking and Payments Federation Ireland stated that member banks, mindful of the prevailing cost of living pressures on their customers, had been cautious in transmitting the full impact of European Central Bank (ECB) interest rate increases to both mortgage holders and deposit rates. The spokesperson highlighted that the increase in average mortgage rates in Ireland over the past year had been the second lowest compared to other Eurozone countries.
Minister Urges Swift Resolution of RTÉ Issues
Simultaneously, Minister Harris stressed the urgency of addressing the substantial financial and governance challenges facing RTÉ, the national broadcaster, and cautioned against the matter becoming an ongoing saga. He emphasized the need for progress throughout August, urging against a situation where the issue prolongs and dominates discussions when the Dáil reconvenes in September.
The minister’s hope is for a definitive resolution that includes clear answers, actionable steps, and comprehensive plans. He reiterated the government’s stance that any additional funding provided to RTÉ would come with specific conditions, primarily centered around transparency and accountability.
Responding to queries about the potential return of Ryan Tubridy to his morning radio slot on RTÉ Radio 1, Minister Harris stated that he was unsure whether such a move would convey the wrong impression to license fee payers. He underscored that it would be improper for government officials to meddle in the selection of radio hosts, while also noting that the sooner the ongoing issues at RTÉ are resolved, the better it would be for everyone involved.
The controversy surrounding RTÉ intensified when it was revealed that the broadcaster had underreported Ryan Tubridy’s earnings by €345,000 from 2017 to 2022. Minister Harris’s key message remains the importance of moving away from a state of uncertainty and drama, encouraging RTÉ to focus on reporting the news rather than becoming the subject of it.
