Tom Parlon (Laois-Offaly, Progressive Democrats)

That is in addition to the €5.2 million for the changes already in the Bill. An identical amendment was discussed in the Dáil. In the course of the debate, Deputy Bruton indicated that the purpose of his amendment was to introduce equity of relief between mortgage interest relief and tax relief on rents. I assume that Senator Phelan's recommendation has the same motivation. Mortgage interest relief is not differentiated on age grounds, but between new mortgages up to seven years and old mortgages. The rates for new mortgages are €8,000 for married persons and €4,000 for single persons. The rates for old mortgages are €5,080 for married persons and €2,500 for single persons.

Rather than bringing equity into the reliefs, the recommendation is biased towards those aged over 50 who are renting as against first time buyers. While the amounts of the reliefs are different, the principle behind both is to concentrate on those who need the relief most, namely first time buyers and elderly tenants. The limits for rent relief have been increased this year, while mortgage interest relief remains unchanged. However, as is normal practice with all tax reliefs, the specified limits will be kept under review over the coming years, particularly in the context of the annual budget. In view of these issues, the Government is not prepared to accept the recommendation.