Michael McGrath (Cork South Central, Fianna Fail) | Oireachtas source

This is an important issue worthy of debate. Considering that the average ECB rate since the introduction of the euro is approximately 2.5% and that the rate went as high as 4.75% approximately 12 years ago, we can see that today it is at an historically low level of 0.25% and it may even come down a little further to deal with the issue of deflation in the eurozone. As night follows day and the Minister has acknowledged, it is inevitable that over time the interest rate will increase, with a direct impact on tracker mortgage holders and a possible indirect impact on variable rate mortgage holders. When considering the mortgage crisis we face and the number of people in arrears, we need to bear in mind that we are facing a potential timebomb as a country. Nobody is expecting the Minister to have all the answers, as he does not control monetary policy or the interest rate policies of the banks. I accept this fully. Nevertheless, we must debate the issue and get a handle on the potential impact on mortgage holders and the general economy if interest rates increase. As that is inevitable in the medium term, we need a policy response to be prepared at least to respond to such a scenario.

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