Brian Cowen (Laois-Offaly, Fianna Fail)

When speculation arose prior to Christmas, the Government decided to deal with it in the budget not only those prospectively entering the market but also buyers already in the market. The question of doubling mortgage interest relief became a targeted, affordable, equitable and appropriate response in the context of the most benign interest rate regime seen in Ireland in modern economic history, moving from 2% to 4% as a result of eight increases of0.25%. One recalls interest rates of 12%, 15%, 16% and 20% during the 1980s.

I never stated I would do nothing. I stated I would do nothing to disrupt the market.