TAXPAYER WON’T PAY FOR SCANDAL, SAYS VARADKAR

THE taxpayer will not have to pick up the tab for the tracker mortgage scandal, Leo Varadkar has pledged.

The Taoiseach also doubled down on Government threats to sanction banks and said if they do not act, the Government will.

Measures which the banks have already been threatened with include a targeted tax or an increased bank levy.

Mr Varadkar said: ‘The banks have it in their hands to resolve this in a matter of weeks or months if they want to do so.

‘I would hope that, after their meetings this week, they will want to do so,’ he said.

And the Taoiseach added: ‘I wouldn’t anticipate there being any cost to taxpayers on this.

‘The banks must pay for any compensation from their own resources.

‘People have heard our language, they want to see action and, as a Government, we want to see action from the banks.

‘If we don’t see action there will be action from the Government.’

Mr Varadkar said: ‘Legislation takes time, and it can take many months to get new legislation through the Dáil, and even at that it can’t be retrospective.

‘But I believe the banks have it in their hands to resolve this.’

He said: ‘I want the banks to act, and the best way to resolve this issue is to restore these people to Leo Varadkar: Call for action the right rate and have them compensated.’

He said the best result would be for the banks to change their approach.

When asked if the consumer regulation role would be taken off the Central Bank – which was threatened by junior minister Michael D’Arcy – Mr Varadkar said that ‘there are no decisions made’ on the specific issue yet.

He said Finance Minister Paschal Donohoe would be updating the Cabinet throughout the process about his approach to the scandal, and also about the bank’s response to the Government’s calls.

Further meetings between Minister Donohoe and the banks are due to take place today and tomorrow.