Mary Hanafin (Dún Laoghaire, Fianna Fail)

I share people's concerns about the number of people who must fall back on mortgage interest supplements and those people who are in danger of losing their homes. We discussed some of the issues surrounding this last night and earlier today. The problem is evident in the number of people making new applications. We had 7,000 at the end of October and I suspect that number will be substantially higher by the end of November. Unfortunately, we can anticipate great demand again next year.

Deputy Barrett is right about the surplus of houses. What good will the surplus be to the banks even if they reclaim the houses? In the current market, they will probably end up selling them for less than the mortgage handed out initially. The situation has a serious impact on the families involved and on the community. The amount of money we anticipated spending on this area this year has fallen far short of what is required. We reckon now that the amount required to be spent will be €26 million and the provision for next year is €31 million. However, looking at the outturn for this year, I expect more will be required next year as well.

The scheme is one that has always been used by a small number of people. However, as demand increases, we will have to examine the needs of the applicants. It is a means-tested scheme and those who qualify get it.

In some ways this counteracts the argument regarding working for 30 hours because one is still obliged to remain within a particular limit. However, it is designed not to be a disincentive to people to enter full-time employment and by limiting this to one group, one always tries to encourage people to take up employment. However, I accept these are changing and difficult times.

It should be noted that the social welfare budget is not limitless. A total of €19.6 billion has been set aside for next year, which constitutes an extraordinary amount of taxpayers' money as a proportion of next year's overall expenditure. Consequently, one must ensure that it is targeted at the right people and those who need it most. I intend to carry out a review of the mortgage interest supplement and the criteria surrounding it soon. However, I am unsure what information can be derived in respect of applicants, those who do not qualify etc., because the scheme operates through the community welfare officers. Nevertheless, I will ascertain what information can be gleaned. As the scheme operates by regulation, it would not require further legislation, were the Government to introduce any changes. While I do not propose to accept the amendment on the report, I acknowledge such an amendment is designed to allow debate on a particular issue, which is the reason it was tabled. However, as Members have suggested, this might be a matter the Joint Committee on Social and Family Affairs may decide it could usefully examine. I will be consider it over the next couple of months in any event.

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