Terence Flanagan (Dublin North East, Fine Gael)
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Question 78: To ask the Minister for Finance his views on a matter (details supplied) regarding mortgage interest relief; and if he will make a statement on the matter. [16200/11]

Michael Noonan (Limerick City, Fine Gael)
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There is a commitment in the Programme for Government to help homeowners in distress. The Government will examine a number of proposals in relation to this commitment. One of these proposals relates to increasing mortgage interest relief to 30% for First Time Buyers who bought between 2004 and 2008 and to finance this in part by abolishing mortgage interest relief for new buyers. When this proposal has been thoroughly examined, I will decide on the appropriate action to be taken. However, any measures will not be introduced before Budget 2012.

Terence Flanagan (Dublin North East, Fine Gael)
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Question 79: To ask the Minister for Finance his views on a matter (details supplied) regarding tax reliefs; and if he will make a statement on the matter. [16201/11]

Michael Noonan (Limerick City, Fine Gael)
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Section 248 of the Taxes Consolidation Act 1997 provided unrestricted relief for individuals in respect of interest on monies borrowed to purchase directly or indirectly (such as through a holding company) an interest in, or make a loan to, a trading company. This relief was abolished in Budget 2011. In recognition of the impact that immediate withdrawal of the relief would have, it was decided to gradually phase out the relief by reducing the amount of relief available on current loans to 75% of the interest payable in 2011, 50% in 2012, 25% in 2013 and 0% in 2014. Furthermore, any loans taken out after 7 December 2010 will not qualify for relief at all. I would be happy to respond directly to the Deputy if there are any specific cases about the impact of these changes he wishes to bring to my attention.