Press Release: People Before Profit Calls For Windfall Tax And Mortgage Interest Cap

Critical words from government on banks are not enough – action is needed

People Before Profit calls for windfall tax and mortgage interest cap

In light of Irish Bank Profits and their failure to pass on ECB rate hikes to depositors Paul Murphy TD said:

“It is all very well for Simon Harris to correctly describe the profiteering by Irish banks as ‘utterly offensive’. However, the question is, is the government going to do something about it or just comment on it like powerless bystanders?

“The profiteering by Irish banks is nothing short of scandalous. They have tripled their profits compared to last year, with AIB, Bank of Ireland and PTSB making €4 billion in the first six months of 2023. This is down to the almost €60 billion they have on deposit with the ECB, while failing to pass on the interest rate rises to depositors. They have shown no such hesitancy with hitting mortgage holders with extra payments of hundreds of euros a month.

“This is another example of an industry taking advantage of the cost of living crisis to engage in gross profiteering. The government is not powerless in this situation. It should act.

“Firstly, the government should introduce a windfall tax on these super profits on their net interest income, as has been done by multiple European countries. Secondly, the government should cap mortgage interest rates at 3%, to stop the rip-off of hard-pressed families.”