Joan Burton (Dublin West, Labour)

The Minister referred three times today to the additional mortgage interest relief provided in the budget. Does he agree that the latest increase in mortgage interest rates, the seventh since December 2005, means the impact of the increase in mortgage relief has been fully absorbed for most mortgage holders? Welcome as the increased relief was, it is now effectively used up.

Has the Minister heard of the phrase "toxic debt", which is used widely in the United States in reference to the sub-prime market? It refers to the situation of a family that has borrowed heavily, usually initially for housing purposes, before proceeding to refinance its borrowing, perhaps to take in other short-term borrowings such as car loans and so on. With continuous increases in the rate of interest, the net result for such families is a growing unaffordability of the debt they have accumulated.

The Minister referred to the tables published by the Financial Regulator on various mortgage prices and products. Does he agree these tables are not easily readable for most people? Many families are exposed on remortgaging and credit card debt, with the latter currently running at some 13%. What is the Government doing to help people who are moving into the danger zone of toxic debt and who are particularly vulnerable to interest rate increases?

See this speech in context