Damien English (Meath West, Fine Gael)

I am very concerned about the reduction in mortgage interest relief. Property debt is a significant problem and the Government is turning its back on it by reducing interest relief. It was already reduced in the last budget. A typical couple might have seven or eight years paid off their mortgage and, more than likely, will have a couple of children because the mortgage gets dealt with in the early years. They could be down by up to €900 a year. Their health levy will be doubled, PRSI has increased and they have the income levy as well. It is a significant hit on such a family who, more than likely, have a couple of children.

The Government should not try to argue this is being done because interest rates have come down. If one got a mortgage seven years ago the interest rate was much lower than it was last year. It is wrong. People made a decision based on that policy. Property debt is a major problem in this country and this change is fundamentally wrong. It is an added pressure on people who cannot afford it and who are more than likely those with young families. It is a big mistake and I want the Government to look at it.

The Minister, Deputy Lenihan spoke about the banks and referred to €80 to €90 billion in loans. I want clarity on that. In his speech the Minister said, "the principal uncertainties in relation to asset quality in the Irish banking system lie in the banks' land and development loans". We have consistently been told by the regulator in committee meetings that those loans are approximately €40 billion. Yet, the figure in the budget is €80 to €90 billion. That alone needs clarity.

I accept all sides of the House want this matter to be addressed in some way. There are various ideas and the Taoiseach is willing to listen to them. Regarding making money available to local businesses, if moving these assets away from the banks frees up that money we need to make fast decisions and have a quick debate on it because the next six to eight months are serious for small businesses. After that, it is probably too late and many small business will have folded. We need to move on it because we cannot wait until next year for the banks to free up that money. It has to happen now.

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