Vol. 1052 No. 2
1. Deputy Pearse Doherty asked the Minister for Finance if he will cancel the increases in excise duty on petrol and diesel scheduled for August and October of this year, given the cost-of-living pressures facing households, and their impact on trade for businesses in the Border region; and if he will make a statement on the matter. [15273/24]
3. Deputy Danny Healy-Rae asked the Minister for Finance if his attention has been drawn to the serious implications of the recent increase in fuel prices on motorists, hauliers, commercial business, farmers and especially rural communities, where people do not have any alternative options but to use their cars. [15418/24]
On 1 April, the Minister and the Government increased the level of excise duty on petrol and diesel. If the Minister gets away with this plan, this increase will be followed by two further tax increases, one in August and another in October. I am sure the Minister is aware that households are still facing a cost-of-living crisis. There is a widening gap between fuel prices North and South. This has been made greater because of the increases in excise duty which the Minister has given the go-ahead to. This puts increased pressure on ordinary motorists, workers and families. It also threatens the trade and viability of many businesses in the Border region. Given that this is the case, will the Minister commit to cancelling the further planned tax hikes on petrol and diesel?
I propose to take Questions Nos. 1 and 3 together.
At the outset, the Deputy should note that the Government and I are conscious of the implications of fuel costs for all sectors of society. This is reflected in the fact that in 2022, in light of the acute impact rising prices were having on households and businesses, the Government provided for excise rate reductions of 21 cent, 16 cent and 5.4 cent per litre on petrol, diesel and marked gas oil, respectively. These temporary reductions were due to end initially on 31 August 2022, but following a review and monitoring of fuel prices they were extended until February 2023, with a phased restoration beginning in June 2023, followed by a second restoration in September 2023.
A final restoration of excise rates was due to take place on 31 October 2023, but in budget 2024 I provided for a further extension until 31 March last, with a phased restoration occurring in two stages on 1 April last and 1 August next.
The first stage of this final restoration of mineral oil tax rate increases came into effect on 1 April 2024. Inclusive of VAT the mineral oil tax rates on petrol, auto diesel, and marked gas oil increased by 4, 3 and 1.7 cent per litre respectively. The amounts due as part of the final restoration scheduled for 1 August 2024 are similar in size. In addition to rate increases related to reversing the 2022 mineral oil tax cuts, increases to the carbon component rates of mineral oil tax on marked gas oil are legislated to come into effect on 1 May 2024 when the amount charged per tonne of carbon dioxide emissions from non-auto fuels increases from €48.50 to €56.00. This increase, inclusive of VAT, will add 2.3 cent per litre to marked gas oil.
Increases to carbon component rates of mineral oil tax on petrol and auto diesel are legislated to come into effect on 9 October 2024 when the amount charged per tonne of carbon dioxide emissions increases from €56 to €63.50. The 9 October 2024 rate increases will add, inclusive of VAT, 2 cent per litre to petrol and 2.5 cent per litre to auto diesel.
A number of factors affect the final retail price of fuels including energy market dynamics, wholesale pricing, individual retail pricing policy, transport costs, exchange rate fluctuations and taxation. While taxation affects the final retail price, amendments to tax rates cannot fully absorb price shocks given the larger impacts of energy markets, embedded costs, as well as pricing policy at wholesale and retail level. The Government has provided relief to consumers and businesses since 2022 through a number of support measures including temporary reductions in excise. However, these measures were introduced as temporary support measures and involve an ongoing cost to the Exchequer while they are retained.
Deputies should note that I will continue to monitor and review the position in the coming months in the context of the final phase of excise rate restorations due to take place in August 2024.
What was missing from the Minister's contribution was any acknowledgement that households are contending with a cost-of-living crisis. What a Minister for Finance who is in touch with people and communities should be doing is thinking about how to relieve the burden on families that are struggling but what the Minister did on 1 April was to increase the pressure on individuals, families and motorists. In my county of Donegal - I come from the west of the county- and in many other parts of the country, a car is not a luxury. A car is the only way people can get from their home to their place of work, the only way they can drop their kids to a hospital or dental appointment, or get to the supermarket. Not all of us live in cities with options like the DART, Luas and buses. Motorists are being punished.
The Minister to respond.
I think the time allowed is two minutes.
No, it is one minute back and forth. Deputy Danny Healy-Rae has not turned up for his question.
The time is allocated to the Opposition. It is two minutes and two minutes.
It is two minutes initially and then one minute and one minute.
Okay.
The Government provided significant reductions in excise in 2022. Those reductions were absolutely warranted and justified by the circumstances at the time. There was a very significant energy price shock and the cost of a litre of fuel was between €2.10 and €2.20 at that point. The situation is volatile. The cost of a barrel of oil is fluctuating and has moved back up towards $90 per barrel. There are lots of different factors that feed into the final price that a consumer pays at the forecourt. I gave a commitment in my concluding remarks earlier to keep the situation under review in the lead up to the planned final phase of the restoration that is due to happen at the beginning of August. This is the restoration of a cut in excise that the Government had implemented to provide relief to businesses and households back in 2022.
The Minister said that there are lots of considerations feeding into the final price that people pay at the pump. What he did not say was that nearly 60% of what people pay to fill up their car is going to the Revenue. It goes to the State because that is the level of tax that is being applied and the Minister's plan is to increase the tax. When people stop off at a petrol station in Gweedore or in Dublin and put a litre of petrol into their car, €1 of what they pay goes to the Revenue Commissioners. The Government has decided to increase that amount. It is doing so at a time when those resources are not required by the State, when the State is about to record a surplus of €11 billion. Petrol and diesel prices have been higher, admittedly, but diesel prices are still 40% higher and petrol prices are still 30% higher than they were three years ago. I have always said that petrol and diesel prices and the taxes we levy on them must be kept under constant review. What I am saying now is that the Minister made the wrong decision last week to increase the cost of petrol and diesel.
Thanks Deputy.
He will make the wrong decision on 1 August, if he does the same and he will make the wrong decision again on 1 October of he decides to do it for a third time.
Thank you, Deputy Doherty. The Minister to respond.
It needs to be scrapped and the Minister should indicate that today.
The Deputy should also be honest and acknowledge what his policy is in respect of this matter. His policy, as set out at budget time, was that there would be full restoration this month. The Sinn Féin policy was, at the time of budget 2024, that petrol would go up by 8 cent, diesel by 6 cent, and marked gas oil by 3.4 cent in the month of April. The party said it would keep it under review and so on but-----
That is the point. That is what one does.
That is what Sinn Féin said. That is what the party provided for in its alternative budget which was costed, as Deputy Doherty always says. That is what he provided for and I assume he was being honest when he was engaging with all of the petrol and diesel garage owners across the Border counties. His policy was, and presumably remains, that there should have been full restoration in the month of April. The Government divided that into a two-part restoration. I have given a commitment that I will keep the situation under review in the lead-up to 1 August and will monitor where the market is at that point.
Yes, but-----
Deputy, you do not have any more time. Deputy Danny Healy-Rae has one minute.
I am glad to get the opportunity to raise this very important issue. People are being driven down to the ground. Wheels will stop. They will cease turning because people just cannot afford what is going on. The Minister must realise that there is more than €1 being added to the original cost of fuel. There was a case to be made for a carbon tax, for those who wanted it, when the cost of fuel was around €1.15 or €1.20, but where are we now? People have no options in rural places when they have to travel long distances to get to work. Hauliers and buses must run on the road, as well as all kinds of commercial vehicles. Fuel costs between €1.74 and €1.80 practically everywhere.
Thank you, Deputy.
At the end of March, the average price was €1.60 to €1.62.
You will have another minute when the Minister responds.
This is not fair. It has gone up by 16 to 18 cent in the space of a few weeks.
When the Government introduced the reduction in excise in the early part of 2022, prices were between €2.10 and €2.20 per litre. Every reduction comes at a cost to taxpayers generally. Well over €1 billion has been provided by way of revenue foregone by the Exchequer to fund the reduction in excise, which was always intended to be temporary. What we did was split the restoration into a number of phases. It has been fully restored, bar the final phase. That is due to happen on 1 August. I have given a commitment to keeping it under review in the lead up to that point in time because there is a lot of volatility at the moment. We have all seen the prices creep up again, even independently of the restoration of excise. What is happening in the Middle East is not helping. Geopolitical tensions and conflict all feed in to the ultimate price that consumers pay.
I will keep it under review, but we should be honest and acknowledge that what we are doing here is talking about restoring cuts to excise that the Government made in the early part of 2022 in an effort to help households and consumers.
Deputy Healy-Rae has one minute. I will then give Deputy Doherty one minute before the Minister responds.
The Minister mentioned one thing there, namely blaming the Middle East and all that. The facts are that a barrel of oil is cheaper now than it has been for a long time and ye are increasing this excise duty now again. Have ye any consideration for the people that are paying their money to fill their tanks? Have ye any consideration or any feeling in your hearts at all? On the one hand, the Minister is saying that the finances are good and that the country is awash with money. Is it these people the Government wants to keep taking the money from? There comes a time that you cannot get blood out of a turnip. The Minister has surely heard that before. These people cannot stick it for much longer. It is touching up to €1.80 now and the Minister is talking about increasing it further in the future. God almighty, on behalf of the people who are on the road, I beg those in government not to be screwing them like they are doing. They are nailing them to the cross by insisting on restoring these cuts. When the cuts were made----
Thank you, Deputy.
----fuel was way cheaper, so the Minister must take a lesser amount now in light of what people are paying now.
Deputy Doherty.
The Minister should be honest. This is not just about restoration and he knows that. He is not planning just to put it up as he did last week and as he will do again in August; he plans to put it up in October again, which is actually going further than what the amount involved was before the excise was reduced. I pointed out to him the pressure that this puts on ordinary individuals and motorists in the middle of a cost-of-living crisis. That is why it should have been kept under review. He should not have gone ahead with the restoration on 1 April. He should not go ahead with it on 1 August. Neither should he go ahead with it in October, which is what he plans to do.
There are 390 fuel stations along the Border. The Minister's plan will means that petrol will be 20 cent cheaper across the Border. He talks about being honest and all the rest. I have been very clear. I told him that this had to be kept under review. He should look at how the price of petrol and diesel has been creeping up before he decides to jack it up even further. He should look at what the British Government has done in the context of extending the excise reduction. What does the Minister say to the owner of Lifford service station, whose customers will get their petrol 20 cent cheaper across the Border? How is that owner going to continue to employ 40 or 50 people? How will station owners in Ballyshannon, Ballybofey, Cavan or Dundalk continue to employ people? The 390 stations in question employ people.
I am sure that what those owners do not want to hear is the over and back between the Deputy and me. They do deserve honesty in both directions. They should know what the Sinn Féin policy was, namely that there would be an 8 cent increase in the price of petrol in the month of April and 6 cent increase in the price of diesel. They deserve to know that, despite what the Deputy might be saying to them in private conversations. He should go back and look at what his party published and what it actually provided for. As part of his playbook, the Deputy attempts to be responsible on budget day. However, every week, he comes into the Dáil, seeks to spend more money and says that we should keep this under review and that we should do more here, there and everywhere. This is ultimately about managing the nation's money responsibly.
I never said that the country is awash with money, Deputy Healy-Rae. I never said that. We publish----
Many of your spokespersons have said so, and ye are squandering millions.
Deputy, please.
Two and a half billion euro has been spent on migration, €600 million has been allocated in respect of a road in the North of Ireland----
Resume your seat.
----and €860,000 to bring dogs and cats in. Those in government are----
----putting the petrol and the diesel up by between 4 and 8 cent a litre.
Deputy, you know----
The Minister is in government; Sinn Féin is not. I am asking him to deal with the problem.
You have the privilege of being in opposition and going around telling everyone everything that they want to hear.
Thank you Minister. We are out of time.
You can tell them all everything they want to hear.
I am only bringing the messages of the people that contact me up here. I did not make up these stories.
You never remind yourself inside this House----
Deputies, please.
The facts are there. People cannot afford to carry on.
You have----
Thank you, Deputies.
Have ye no feeling in your hearts or bodies at all?
You have the luxury----
Thank you Minister. Resume your seat; your time is up.
If I may, you have the luxury, Deputy-----
I have no luxury.
You have the luxury----
Resume your seats.
I am paying as much as anyone else.
----of being permanently in opposition and being able to go around the county telling everyone what they want to hear.
You will never make a difficult decision, you will never do any of that.
I am bringing up the stories honestly that I am hearing from the people I am meeting every day.
That is the luxury you have, Deputy. Over here on this side of the House, we have to make decisions.
Minister, through the Chair, please. You are not speaking to Deputy Healy-Rae. Your time is up. Please resume your seat in order that Deputy Doherty can proceed with question No. 2. Thank you.
Thank you. I am so disappointed that the Minister for Finance would not address the issue I raised in respect of 390 business people.
Deputy, are we on question No. 2?
I am on question No. 2. There are 390 business people and you would not answer the question as to what they are going to do when petrol and diesel are 20 cent cheaper across the Border.
That is not the truth.
You divert. It is on your watch. You are doing this deliberately.
Resume your seats.
You should tell them that you wanted to put it up by 8 cent.
I asked you in relation to----
You wanted to put it up by 8 cent in the month of April.
Deputies, please.
You are doing this. I gave you an opportunity and you would not answer. You are pushing up the prices.
You wanted to put it up by 8 cent in the month of April.
There are families relying on it.
I will have to suspend the House.
You should be honest with them.
We were honest when we asked to keep it under review.
Your time is up.
That is twice what the Government put it up by. That is what I mean when I say you should be honest with them.
We said to keep it under review and you know fine well. Do not be dishonest.
There is no 20 cent difference.
It is you who makes the decision.
You made the decision to jack up the price. You are making the decision to do it in August and you are planning to do it in October again, and shame on you.
There is no 20 cent difference.
You will not answer about those jobs that are dependent on this type of business.
You just go around telling them all what they want to hear. That is what you do.
I am going to suspend the House. Deputy Doherty has not asked the question.
I am asking the question but he keeps on interrupting me.
The Cathaoirleach Gníomhach means question No. 2.
I am going to suspend proceedings.
I will ask the question, with respect to the Chair.
With respect, yes. When I am sitting in the Chair, you do not speak to the Minister. Minister, you do not speak to the Deputy. This is not a circus. This is Leinster House; it is Dáil Éireann. It would be----
Chair, I am being provoked on a constant basis. The Deputy stood up and did not address the question that was here.
Excuse me, Minister. Whether you like it or not, I am in the Chair.
You are.
What I am going to do now is suspend the House for five minutes until you all calm down and have some respect. We will rise for five minutes.
2. Deputy Pearse Doherty asked the Minister for Finance if he has engaged or will engage with fellow members of Economic and Financial Affairs Council, ECOFIN, to secure financial and economic sanctions against the State of Israel in response to flagrant violations of international law committed by the State of Israel in Gaza and the occupied territories of Palestine; and if he will make a statement on the matter. [15274/24]
In the past six months, we have witnessed, before our very eyes and in very real time, an unfolding genocide against the people of Gaza perpetrated by the State of Israel and its war machine. What engagement has the Minister, as a member of ECOFIN, had with colleagues in the European Union to implement a comprehensive suite of financial and economic sanctions against the State of Israel? If he has not, will he, on behalf of the Irish people, put this on the agenda of the next ECOFIN meeting?
I thank the Deputy. At the outset, it has to be clarified that restrictive measures, or sanctions as they are generally referred to, are first and foremost, a policy intervention utilised by the EU in regard to Common Foreign and Security Policy, CFSP. As such, they are predominantly discussed at the EU Foreign Affairs Council. As the Deputy is aware, Ireland is represented at the Foreign Affairs Council by the Tánaiste and Minister for Foreign Affairs and for Defence. The Tánaiste attends meetings of the Council in his capacity as Minister for Foreign Affairs. Any decisions regarding the introduction of EU sanctions are subsequently taken by Council of the European Union.
Given the role of the EU Foreign Affairs Council and ministers for foreign affairs in regard to EU restrictive measures, there is no specific responsibility per se for the Economic and Financial Affairs Council in regard to the discussion, development and implementation of EU restrictive measures. However, matters relating to sanctions have been discussed by finance ministers at their Economic and Financial Affairs Council meetings in the context of economic ramifications for the EU and the economic impact elsewhere in the world. These discussions may relate to new packages of sanctions introduced by the EU. For example, there were discussions on matters regarding Russia’s illegal invasion of Ukraine, where the Council covered the impact of the sanctions package on the EU economy and its effectiveness in reducing Russia’s ability to continue the war in Ukraine.
In view of the unacceptable levels of violence being perpetrated by certain Israeli settlers against Palestinian communities in the West Bank, in particular since 7 October 2023, Ireland has worked to progress sanctions against violent settlers at EU level. In this regard, the then Taoiseach, Deputy Leo Varadkar, and the Prime Minister of Spain, Pedro Sánchez, wrote to Commission President Ursula von der Leyen last February. This letter called for an urgent review of the European Union-Israel association agreement and to consider whether Israel is complying with its human rights obligations under that agreement. The letter also asked that the Commission propose appropriate measures that could be taken if Israel is found to be in breach of these obligations.
At this moment, the State of Israel is using starvation as a weapon of war. Its depraved action is provoking famine and every person, man, woman and child is a target of this assault on human life. Israel has targeted civilians and civilian infrastructure. It has decimated homes, hospitals and schools across Gaza. It has laid waste to Gaza, including its land, infrastructure and people, and has done so with impunity. Worse still, it does so with foreign money and weapons of war. We are not bystanders. Ireland can and should act in solidarity with the Palestinian people in defence of human rights and justice and holding Israel to account for its war crimes. It is time for the European Union to impose economic and financial sanctions on the State of Israel to ensure it pays a price for its war crimes. Will the Minister bring forward proposals to the next meeting of ECOFIN to this effect to hold Israel to account?
As I said in my initial reply, the issue of sanctions is predominantly discussed and dealt with at the EU Foreign Affairs Council. As I said, when the issue of sanctions is discussed at ECOFIN, it is within the context of the economic impact of the European Union. The political decision to impose sanctions for the reasons the Deputy has outlined is not one that would be led by ECOFIN. As the Deputy is aware, the Government has been very clear on what is happening in the Middle East. The Government has repeatedly and consistently called for an immediate ceasefire and a sustained increase in humanitarian aid. It is clear this is the desire of the overwhelming majority of the international community, along with the immediate and unconditional release of hostages, urgent and effective humanitarian access, and the protection of civilians. We will continue to use every means available to advance that call.
As the Minister said, in the past we have seen how ECOFIN and the Eurogroup have acted swiftly in playing their roles when they saw fit to hold countries to account for their acts of aggression. A package of financial and economic sanctions against Russia being introduced and renewed several times was a clear example of this. However, as well as accountability there needs to be consistency. There need to be sanctions against the State of Israel.
What I am hearing from the Minister today is that this is not his role and he does not believe it is appropriate that he bring forward a proposal for discussion at ECOFIN regarding sanctions. I am not surprised by that. I am annoyed by the fact that the Minister is trying to stall legislation currently before the finance committee. The committee waived scrutiny of the legislation which would ask us not to use taxpayers' money to invest in companies and shares in companies involved in the occupied territories. I welcome that the NTMA has divested from a quarter of its shareholding, but we are still investing State money in activities involved in the occupied territories. Will the Minister ask that this be discussed at the next ECOFIN or Council meeting?
I thank the Deputy. Regarding the Private Members' legislation to which the Deputy referred, it is appropriate that there would be pre-legislative scrutiny by the committee. I understand that has now been concluded. I look forward to the report being completed and furnished. It will be given early consideration. I note the Deputy's welcome of the decision of the NTMA regarding the divestment of certain assets, which was publicly notified in recent days.
The point I am making is that when it comes to foreign policy and security matters, they are dealt with by the EU Foreign Affairs Council. That is where the instigation of any EU-wide initiative regarding new sanctions would generally come from, rather than the economic committee which will deal with and consider the economic consequences. The political initiative and decision of foreign affairs and security matters, the very issues the Deputy has raised, would fall under the Foreign Affairs Council of the European Union.
4. Deputy Pearse Doherty asked the Minister for Finance the value of money disbursed under the mortgage interest tax credit to date, together with the number of successful applicants; the number of applicants who have received a partial credit; the number of applicants who were rejected on the grounds that they had an insufficient income tax liability; and if he will consider amending the credit to ensure struggling mortgage holders experiencing an increase in their mortgage costs can receive the full credit. [15275/24]
In the past two years, mortgage interest costs for households have risen by more than 65%. For over a year, Sinn Féin has called for the introduction of targeted mortgage interest relief for households struggling with rising interest rates. The Government opposed those calls for months, but it then performed a U-turn, another example of where the Government has seen the sense in what Sinn Féin said. It introduced a mortgage interest tax credit in the budget. However, it made a mess of it, if we can be honest. I said at the time that I had many reservations about the way in which the Government introduced the tax credit. Will the Minister provide details of the take-up of this credit thus far and the number of applicants who were unsuccessful due to their incomes being too low?
I thank the Deputy. As he knows, mortgage interest tax relief, in the form of a mortgage interest tax credit, is a one-year temporary relief available to homeowners with an outstanding mortgage balance on their principal private residence of between €80,000 and €500,000 on 31 December 2022. It is available at the standard rate of income tax and is based on the increase in the interest paid in 2023 over interest paid in 2022. The value of the relief is equal to the lesser of 20% of this excess interest amount or a maximum of €1,250. Where the interest payments in respect of the 2022 or 2023 tax years are not for a full year, pro rata application will be done to ensure interest is applied on a period of equivalence basis and that the cap is adjusted accordingly.
To avail of the relief, the taxpayer must file a 2023 income tax return and upload their certificate of mortgage interest for 2022 and 2023, as well as confirmation of their mortgage balance at the end of 2022. Furthermore, the taxpayer must be compliant with local property tax requirements and must have paid income tax in 2023. The relief operates by way of a credit offset against a taxpayer’s income tax liability for 2023.
I am advised by Revenue that, as of 3 April 2024, 17,059 taxpayer units made a claim for this credit on their 2023 PAYE income tax return and 14,762 claimants received a refund of tax, totalling more than €14 million. Of these, 188 claimants paid tax which was less than the full credit claimed. Revenue notes that other credits and reliefs claimed, such as health expenses, may also have contributed to the overall amount of refunds issued. A further 2,091 claimants are either in a balanced position or had an underpayment reduced by the credit being applied to their record.
An additional 206 claimants are not in a position to benefit from the payment because they did not pay any income tax in 2023. I will add further information in a moment.
In budget 2024, the Minister introduced this tax credit and that was, as I said, after sustained calls from Sinn Féin for the introduction of mortgage interest relief for households that had seen their mortgage rates spiral, but there are serious problems with the tax credit, as I told him at the time. I have raised the fact that 138,000 mortgage holders who have their seen their mortgage costs rise would not qualify for anything from the tax credit, given they have been excluded because their balance is less than €80,000. We also know that households were denied the mortgage interest relief tax credit because their incomes were too low. The Minister gave the figures earlier. Hundreds of people cannot claim it because their incomes are too low. This is absolutely outrageous and blatantly unfair and it shows the mess the Minister has made with this measure.
I am aware of a single mother whose annual mortgage costs have risen by more than €5,000, but she is being denied the tax credit because she is in receipt of a single person childcare credit. She does not have an income to allow her to benefit from this. Those who need this support the most are the people who are being denied it by the Government. Is the Minister going to address this or is he just going to say that is the way it is?
As I said, more than 17,000 taxpayer units have made a claim for this credit so far. In excess of €14 million has been paid out and that number is increasing all the time. It is relatively straightforward to make a claim. I encourage all those who are eligible for this credit to make a claim through the PAYE Anytime system online as quickly as they can.
It is a non-refundable tax credit. The system the Deputy is referring to is akin to the old system, where tax relief was provided at source, and when designing this credit in the months leading up to the budget last year, I explored with the Revenue Commissioners the option of doing it that way but the IT infrastructure was simply not there and could not have been developed or procured within the period in question. The system on which we decided, therefore, seeks to give as much support as possible to as many people as are eligible. I believe the number of people claiming will continue to increase and we should collectively encourage the many people who are eligible for this credit to avail of it.
People are claiming. That woman whose mortgage costs have increased by €5,000 cannot get it. She has been refused because the Minister made a balls of the design of this legislation.
Parliamentary language, please, Deputy.
With respect, the Minister made a mess of it. That is the reality. A total of €125 million was allocated to this. Only €14 million has been drawn down so far, or about 11%. The Minister stated 14,000 people have claimed the credit. We are in the month of April. There are 707,000 mortgages and only 14,000 people have claimed the credit. It is clear the tax credit is not working as it was intended. I earlier raised the fact the requirement to fill out an income tax liability form is acting as a clear disincentive for applications. It should have been done as Sinn Féin suggested, namely, via deduction at source.
The Minister has confirmed that hundreds of applicants, despite seeing their mortgage costs rise, have been denied the tax credit, in part or in full, on the grounds their incomes are too low. That is outrageous. It is absolutely scandalous. Rising mortgage costs are putting serious pressure on people. The Minister has made a mess of this legislation. He needs to go back to the drawing board to make sure those who need support get it.
The system that has been put in place is straightforward. Many thousands of mortgage holders have been in a position to claim this credit so far. Many more are eligible to do so and I encourage them to make their claim. People have up to four years to make the claim, but I expect the number will continue to grow.
The Deputy's fundamental point is the tax credit is not refundable in nature and should have been implemented similar to the previous mortgage interest tax relief, and that is an option I explored with the Revenue Commissioners in the months leading up to the budget last year. I was informed, as the Deputy would equally have been informed, that that was not possible. The system and the IT infrastructure could not support such a system and it would have taken a long time to be developed. That is why we went with the most straightforward system possible to get as much support as we could to those who are eligible.
Not true.
