Marian Harkin (Sligo-Leitrim, Independent) | Oireachtas source

The Sinn Féin motion to reintroduce mortgage interest relief is worthy of serious consideration. I say that for many reasons but, in my short time, I will address two that stand out.

First, the proposal is made in the context of inflation levels of more than 7.7%, allied with very significant price increases for many daily essentials such as food, home heating oil, petrol, diesel, etc. I heard the Minister for Finance, Deputy Michael McGrath, say that this issue cannot be considered in isolation, but it is not being considered in isolation. It is being considered in the context I have just spoken about, that is, spiralling inflation and prices for hard-pressed households and, on top of that, increasing mortgage interest rates.

Anybody paying a mortgage knows it is a considerable chunk of money out of one's monthly income and most mortgages are paid from monthly incomes. The very significant increase in mortgage interest rates in such a short time means mortgage repayments are increasing significantly every single month, with the real fear that the situation will worsen. The increase is significant for those on tracker mortgages, but it is crucifying for those whose mortgages are held by vulture funds. Approximately 65,000 people, many of them families, are paying mortgage interest rates of 7% or more.

I recognise that the Government has not stood idly by and has made efforts to assist individuals and families to manage the spike in the cost of living, but the Minister of State has to agree with me that, at the very best, it is a safety net. While it is an important safety net, families and individuals are still facing much greater demands on their income and are making very difficult choices about food, heating, children's clothes, etc.

Many homeowners paid inflated prices for their homes in the first place and loading significant increases in mortgage repayments on to their shoulders at this time puts them under extreme pressure. Many mortgage holders may not be able to continue paying their mortgages which causes heartbreak and devastation and is a disaster for them and their families. It also adds to the housing waiting list.

In my constituency, house prices have increased by 18% in counties Sligo and Leitrim since 2021. They have increased by 14% in Donegal and by a similar amount in County Roscommon. Those who have taken out mortgages recently have paid significantly more for their properties. They are under even more pressure when the interest rate they pay increases because their repayments were calculated based on their monthly income. The proposals in this motion could help.

My second reason for supporting this proposal is that it is targeted and temporary, applies to some 30% of the increased costs relative to June 2022 and does not exceed €1,500 per annum. That is what makes this proposal worthy of serious consideration, especially where it is confined to a family home and under no circumstances could be paid on a second property. The amount is capped at €1,500, which means nobody can benefit massively, although it is still a significant amount of money, at approximately €125 per month at most. That is real money for many people and even on a temporary basis, it would make a real difference.

I have listened to various opinions on this. The Government seems to suggest that enough is being done, as it were, and we will continue as we are, but most people recognise that is not the case. Others have expressed reservations that it is a regressive taxation step. If it were the old mortgage interest relief scheme, I would agree but it would be capped and temporary and while there would be a transfer of some economic benefit to home owners, it is small and designed to help those who are most at risk of not being able to continue paying their mortgages.

Finally, the Government has tabled a countermotion that takes an as-you-were position but this morning during Leader's Questions, the Taoiseach did not set his face against the proposal. I hope that on reflection, the Minister for Finance will not do so either.

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