Paschal Donohoe (Dublin Central, Fine Gael) | Oireachtas source

As the Senators will be aware, mortgage interest relief, MIR, for principal private residences was phased out on a gradual basis over the period from 2009 to 2020. The decision to abolish it was taken in the wake of the financial crisis with the cost of the relief being one of the influencing factors. For example, at its peak, in 2008, the scheme costed in excess of €700 million per annum.

The reintroduction of such a relief is also likely to be very costly. The latest Central Bank data indicate there were around 719,500 primary dwelling mortgage accounts at the end of June 2022, with an outstanding balance of €98.7 billion. The average interest rate at the end of September was around 2.7%. Using these data as a guide, were MIR to be reintroduced and granted at the standard rate of income tax, it could potentially cost in the region of half a billion euro. As the Senator will appreciate, even the reintroduction of a more tailored or selective form of relief is likely to involve very significant costs. Therefore, I am not in a position to accept the recommendation.