Pearse Doherty (Donegal, Sinn Fein) | Oireachtas source

I move amendment No. 167:

In page 142, between lines 19 and 20, to insert the following:

"Report on maintaining Mortgage Interest Rate Relief

60. The Minister shall, within 6 months of the passing of this Act, prepare and lay before Dáil Éireann a report on maintaining the current Mortgage Interest Rate Relief until such time as mortgage interest rates are equivalent to the European average.".

This amendment relates to mortgage interest relief. We have already dealt with mortgage interest relief for landlords. Fine Gael, its Independent colleagues in government and Fianna Fáil are supportive of an increase in mortgage interest relief. It will not be lost on mortgage holders that this comes as a reduction in mortgage interest relief is being introduced next year for those who are in a position to avail of it. The amendment asks that this relief be maintained at the current level, at a cost of €46.5 million per annum. While that is a sizeable amount, it also points to the benefit that a large number of people have been able to avail of. It is not a perfect policy but it provides some relief and helps to reduce the high cost of living for many people.

During our earlier meeting with the President of the European Central Bank, Mr. Mario Draghi, we discussed the high cost of interest rates in this State. The current plan is to phase out mortgage interest relief over the next three years, which I do not support given the current environment. The amendment asks that the Minister keep mortgage interest at the current rate until such time as mortgage interest rates are equivalent to the European average.