Brian Cowen (Laois-Offaly, Fianna Fail)

This was a proper response and it resulted in much greater benefits for a larger number of house buyers and those with mortgages than would have been the case had I taken on board some of the proposals put forward by the Opposition at the time.

I do not accept the point made by the Leader of the Opposition to the effect that I made an incorrect policy decision in choosing that option rather than proceeding with stamp duty reform at a time when house prices were appreciating. If I had instigated such reform, prices would have been hiked up to an even greater degree because it was then a seller's market. I continually made that point in the past and I stand by my assertion. The reforms I put in place in the most recent budget were introduced at the appropriate time.

On increasing interest rates, there is no doubt that difficulties in international markets and the lack of access to funds are causing problems in the context of the cost of the inter-bank rate for banks themselves. That cost is being passed on to consumers. I regret that this is a consequence of what occurred in international markets during the past eight or nine months. Ireland is not immune to what happens in those markets. Since joining the euro, we have enjoyed historically low interest rates. I do not underestimate the increased costs accruing to mortgage holders. However, the responses I brought forward in successive budgets in respect of increasing mortgage interest relief were appropriate and led to people benefiting.

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