Brian Lenihan Jnr (Dublin West, Fianna Fail)

To encourage those who want to buy a house over the next three years, I will provide that qualifying loans taken out before 1 July 2011 will continue to get relief at current levels for seven years, and transitional arrangements will apply to loans taken out in the subsequent 18 months at a reduced level and duration. It is my intention to abolish mortgage interest relief entirely by the end of 2017. Full details will be set out in the finance Bill.

The Government already provides help and support for families in difficulty with their mortgages through the mortgage interest subsidy scheme. A review of the operation of this scheme will be completed early in the new year.

Responding to the Flooding

The recent flooding has brought severe hardship on communities in the affected parts of the country. I am announcing today that in excess of €70 million will be provided in the remainder of 2009 and into 2010 to help those affected by the recent flooding and fund work to minimise the risk of future incidents.

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