Brian Cowen (Laois-Offaly, Fianna Fail)

A single PAYE payer on the average industrial wage has seen his or her after tax income increase by approximately 44% in real terms since 1997 of which approximately half is due to tax reductions. The last factor influencing repayment ability is the interest rates available to the market. At present mortgage interest rates are approximately 4% down significantly from the rates of 7.1% to 8.85% which prevailed before we came into office. However, the prospect that interest rates are likely to be higher over the medium term with obvious implications for the burden on repayments should be kept firmly in mind by borrowers.

On the issues which affect affordability, we are in a better position now than when the Deputy's party was in office. The policies we have pursued will continue to bring an ability for people to repay on the basis of the policies we are implementing.

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