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

On the European Central Bank, there is a common currency and we have joined that. We are members of the European Central Bank in so far as every state nominates a representative. Of course, he or she does not act as an Irish representative and must act in the collective in the context of the European Central Bank itself.

In terms of monetary policy, they have to control inflation. Inflation has to be controlled. Unfortunately, interest rate increases have always been a mechanism of monetary policy to reduce a rampant inflation rate, which people have articulated concerns about in this House for the past nine months and has necessitated unprecedented Government intervention in terms of cost-of-living packages and budgetary packages to reduce the cost of public services, to reduce taxation and to provide increased social protection payments to many people. We have done that in the context of a very significant €12 billion intervention over the past 12 months by the Government to alleviate pressures on people because interest rates create pressures on people, particular, as the Deputy has identified, on the mortgage front.

In the context of the forthcoming budget, we will do what we can again to alleviate pressures on people in respect of the broader costs that they have. In healthcare alone, for example, we have brought down the drugs payment scheme, DPS, threshold. The threshold was €124 before we came into government; it is now €80. Paediatric inpatient charges have been eliminated, examination fees waived and adult patient charges eliminated. There are free primary school book schemes for September. There will be a €100 child benefit one-off payment in June. We had the fourth energy support provided to people last month. There has been a steady consistent almost monthly intervention by Government to try and alleviate the pressures on people right across the board.

On the mortgage front, the Minister for Finance and senior officials met with providers, particularly in the non-bank sector, to discuss mortgage interest rates. The Minister raised concerns about the impact of those rate rises on borrowers and the potential this may have in terms increasing mortgage arrears.

The Minister had emphasised that it is a priority of Government to reduce mortgage arrears and he has raised it with the Central Bank as well. The Minister wrote to the Central Bank in the context of the review of the consumer protection code to underline the importance of customers with performing mortgages being supported and facilitated to switch to avail of lower mortgage interest rates. We will continue to keep this matter under review.

See this speech in context