Eamon Gilmore (Dún Laoghaire, Labour)

As I understand it, the purpose of this resolution is to raise the thresholds for the relief on income tax for preferential loans as distinct from the ordinary loans that people take out. I was interested to hear the Taoiseach's presentation to the effect that people who get loans at below the market interest rate should not enjoy an additional benefit from having got such a loan. This deals with the whole area of home loans and home purchase.

There were great expectations before the budget that there would be considerable relief for those purchasing their homes. I welcome the measure to increase mortgage interest relief and this resolution is somewhat related. However, it has to be borne in mind that in the past 18 months alone the mortgage repayment on the average loan has increased by approximately 50%. In some cases people are paying €500 per month more for their home loan than 18 months ago. It is hitting people very hard. The measure announced today, while welcome, will be wiped out once there is another increase in interest rates which is anticipated.

The other measure which I regret was not addressed by the Minister for Finance was the question of reforming stamp duty.

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