Stephen Donnelly (Wicklow, Independent) | Oireachtas source

I have mixed feelings about the mortgage interest supplement. I have seen it used to great effect in a few cases to keep people in their homes for a small number of months while they recovered financially and could get on with their lives. Similarly, I have seen it used to assist people in cases in which there was no real prospect of their recovering financially. In such cases, it is wasted money.

The proposed saving as a result of this cut is €6 million gross or €4 million net to the State. Obviously, this change will be implemented. Would it be possible for some of the savings made to be ring-fenced and reinvested in the Money Advice and Budgeting Service, MABS? The banks are rushing to meet the new Government targets on restructuring. In many cases, mortgage holders are going into the banks unarmed, unequipped and without the knowledge they need. We are all aware of the hugely stressful situations in which people have found themselves. Organisations such as MABS and New Beginnings are doing a great job but they can only take on a fraction of the number of people who have to be processed to meet the new Government targets.

I have two questions for the Minister. First, has any analysis been undertaken of how many people to whom mortgage interest supplement is currently of assistance will be pushed into unsustainable solutions as a result of this measure? Obviously, there will be some genuine losers. Second, would it be possible to ring-fence some of the savings to assist MABS in increasing borrowing support for this year and next year while the Government targets for restructuring are being met?

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