Liam Twomey (Wexford, Fine Gael)

The Minister of State should be careful as most of the money is going on mortgages. It was cheap access to money that allowed people to buy such houses, but now house prices have levelled, and interest rates are rising. It might not affect the Minister of State if he has plenty to spend. However, in the new year, following the European Central Bank's decision to raise interest rates, mortgage-holders will be paying an extra €90 every month for every €100,000 borrowed. For example, if a mortgage was €250,000 — not by any means substantial in today's terms — it will mean an extra €2,700 going on interest in 2006 than in 2005. The mortgage relief announced in the budget is of little benefit to most people with similar or larger mortgages.

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