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

To be clear, the current position is that mortgage interest relief is to end for all existing recipients at the end of this year. The reason it is being retained in any form is that the confidence and supply agreement provided that it would be retained on a tapered basis. I would love to see it retained at 100% of the existing rate next year but this was the best we could achieve in the negotiations.

It was my party which brought it to the table. While it certainly is the case that mortgage interest relief was retained within the base, that was only done following the election early last year and the negotiations on the confidence and supply agreement when the officials became aware that this had become an issue and took the conservative view of keeping the mortgage interest relief in the base. That is why the reduction in the rate of relief, from 100% to 75% next year, is showing up as a yield for the Exchequer. It is because of that decision.

We should be clear on the existing legal position. Mortgage interest relief was to be abolished completely for everyone overnight from 1 January next year. As Deputy Doherty stated, that would have had serious consequences for up to 300,000 mortgageholders.

I would love to see it kept at 100% but this was the best we could have achieved as part of the negotiations into which we entered.

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