Micheál Martin (Cork South Central, Fianna Fail) | Oireachtas source

Níl aon amhras ach go bhfuil rátaí morgáiste ag ardú ó thosach na bliana agus níos luaithe. Níl aon amhras ach go bhfuil sé sin ag cur brú ar dhaoine agus ar theaghlaigh. Tá a fhios againn faoi sin. Mar aon leis sin, is léir go ndearna an Rialtas an-chuid sa bhliain seo caite ó thaobh an chostais mhaireachtála. Ó thosach na bliana seo caite go dtí an lá atá inniu ann, tá an-chuid déanta againn ó thaobh cabhair agus tacaíocht a thabhairt do dhaoine go hiomlán, trí cháin a ísliú, níos mó cabhair a thabhairt do dhaoine ó thaobh seirbhísí ón Stát, an costas a bhaineann leis sin a ísliú agus mar sin de. Is éard atá ón Teachta ná faoiseamh faoi leith a thabhairt isteach roimh an gcáinaisnéis.

The formulation of monetary policy and the setting of interest rates in the first instance is an independent matter for the ECB. The ECB responded to the inflationary spiral with a series of interest rate increases. As the Deputy knows, the Government has no role in setting official interest rates nor in setting the retail interest rates that lenders may charge on their loans.

Mortgage interest relief for principle private residences was phased out on a gradual basis over a period from 2009 to 2020. It cost more than €700 million in 2008. Prior to its curtailment and eventual abolition the top two income deciles accounted for close to half of the tax foregone through tax relief. As the Deputy also knows, the recent report to the Commission on Taxation and Welfare put forward no case or recommendation for the reintroduction of mortgage interest relief.

The average interest rate on new mortgages here was 2.9% in February compared with 3.3% across the Eurozone on average. Rates here on new mortgages are the third lowest in the euro area. That does not mean of course that people are not being impacted by the significant increases from the low levels at which interest rates historically had been. People are being impacted. We cannot look at our response to it as an ad hoc measure alone. We have to look at it in the broader context, as I said earlier as Gaeilge, of the cost-of-living measures that have already been provided but also in the budgetary process. Our view is that the budgetary process is the most appropriate way to consider further action in respect of the cost-of-living challenge and in respect of those particularly under pressure from increased mortgage interest payments.

I note that there was no mention at all of mortgage interest relief in Sinn Féin's pre-budget submission which was published last September, even though the ECB had already increased rates. There was a wide expectation of further rate increases but Sinn Féin was silent on it, on that occasion. Again, the Minister for Finance and senior officials met with providers recently in the non-bank sector to discuss mortgage interest rates and he has engaged with the Central Bank in regard to his concerns about the impact of recent mortgage interest rises on borrowers and the potential this may have to increase mortgage arrears. We will continue to work on that agenda also with the Central Bank. Overall, the Government will look at this in the context of the budget and the wider cost-of-living measures we have introduced.

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