Mary Harney (Dublin Mid West, Progressive Democrats)

This is not a new provision; it is an adjustment that takes place annually. We are making an adjustment in light of the increase in interest rates. The measure does not apply to a large number of people. Individuals with the loans in question have, over the past year, enjoyed a very beneficial rate. We are simply taxing benefits-in-kind at the marginal rate. Health insurance, cars or holidays provided by one's employer are regarded as benefits-in-kind. The benefit that a preferential loan represents should be treated in the same way. The rate is adjusted annually in light of interest rates. The data come from the Central Bank, which provides the information on the appropriate rates.

See this speech in context