Mattie McGrath (Tipperary, Independent) | Oireachtas source

At the outset, I would like to express, on my own behalf and on the Rural Independent Group's behalf, our abhorrence of the incident that happened in Navan a couple of days ago. It is truly shocking. I have not seen the video but, from what I have heard, it is appalling. Every right-thinking person must condemn it.

The Government has failed the Irish people by allowing the European Central Bank, ECB, to push continuously for interest rate hikes, despite the dire consequences for Irish borrowers. Today, I want to question the passive stance of the Government in allowing the ECB to push up interest rates from zero to 3.75%, the most severe monetary austerity measures since the ECB was founded 25 years ago.

The Government has remained silent on this monetary policy position, despite the fact that it is driving many Irish households to the brink of financial ruin. First, the ECB interest rate hikes represent nothing short of austerity policies, are disproportionate and, indeed, ineffective, and have done nothing to lower inflation. Second, the issue is causing severe financial pain and anxiety in every household, particularly for mortgage holders and borrowers. We hear a lot about middle Ireland, but this is where this is impacting. These interest rate hikes are devastating the Irish economy and posing a significant threat to the livelihoods of citizens.

Countless homeowners now face the risk of eviction due to the astronomical costs of mortgage repayments. The ongoing policy of trying to combat inflation through interest rate hikes is like trying to crack a chestnut with a sledgehammer. It is ridiculous. It severely impacts on all Irish borrowers, exacerbating the inflationary spiral.

The Government's failure to act or even question the ECB's persistent interest rate hikes now poses a grave threat to the Irish economy. This reckless monetary policy is driving up borrowing costs for small businesses, farmers and homeowners in Tipperary and across the country, while failing to curb effectively or have any impact on inflation.

The most vulnerable group affected by these interest rate hikes are the 712,000 plus homeowners and 76,304 buy-to-let mortgage holders, accounting for a staggering €100 billion plus in outstanding loans. Among them, tracker-mortgage customers and interest-only customers are particularly vulnerable.

With every 1% increase in ECB interest rates, borrowers in Ireland face an additional burden of approximately €52 per month for every €100,000 borrowed. This places immense strain on borrowers, especially those with large outstanding loans. For example, one of my constituents in Tipperary, who is part of the most vulnerable group of borrowers with an average balance of €225,000 and 19 years remaining, will have extra repayments, in addition to the monthly repayment of €951, driving it up by over €6,000 a year. This is simply unsustainable and Government will have to act.

See this speech in context