I must now deal with a deferred division relating to the motion on the mortgage interest relief scheme. On Wednesday, 8 February 2023, on the question, "That the amendment be made", a division was claimed and in accordance with Standing Order 80(2), that division must be taken now.
Mortgage Interest Relief Scheme: Motion (Resumed) [Private Members]
The following motion was moved by Deputy Pearse Doherty on Wednesday, 8 February 2022:
That Dáil Éireann:
notes that:
— the European Central Bank has increased its main lending rate for the fifth time, to a rate of 3 per cent, having been 0 per cent last June;
— approximately 200,000 tracker mortgage borrowers are facing immediate and significant increases in their mortgage repayments;
— approximately 65,000 mortgage borrowers with mortgage contracts held by vulture funds are facing immediate and significant increases in their mortgage repayments, with many now charged interest rates of more than 7 per cent;
— it is anticipated that retail banks will increase their fixed and variable rates in the period ahead, with other borrowers now facing the prospect of higher mortgage repayments; and
— these interest rate hikes will exact further financial pressure on borrowers that are already facing higher costs and lower disposable incomes as a result of the cost-of-living crisis;
further notes that:
— the Taoiseach previously stated that homeowners whose mortgages were sold off to vulture funds would be no worse off than those whose loans were owned by retail banks;
— the Minister for Public Expenditure, National Development Plan Delivery and Reform previously stated that he would be happy for his mortgage to be sold to a vulture fund; and
— mortgage borrowers whose loans were sold to vulture funds are now facing interest rates that are significantly higher than those charged by retail banks, resulting in significant financial pressure for them, proving the assurances of the Taoiseach and the Minister for Public Expenditure, National Development Plan Delivery and Reform to be nothing more than empty platitudes;
acknowledges previous statements made by the Minister for Finance, Michael McGrath TD, in 2015, when he said in reference to Mortgage Interest Relief "this payment is a very important support for families - the process of withdrawing it from existing homeowners at the same time as they are subject to a residential property tax highlights a Government that is pursuing policies that are making home ownership increasingly unaffordable for families";
agrees with Minister McGrath's then assessment and considers it an apt description of the policies of the current Fine Gael, Fianna Fail and Green Party Government; and
regrets Minister McGrath's U-turn on this issue, as confirmed by his statement last week that he has no plans to introduce a mortgage interest relief scheme, despite his previous calls in opposition, which suggests that neither Fianna Fáil or Fine Gael can be trusted to support homeownership or homeowners; and
calls on the Government to:
— offer hard pressed families real support, not empty words;
— introduce timely, targeted and temporary mortgage interest relief, to support homeowners facing significant increases in their mortgage costs;
— provide mortgage interest relief equivalent to 30 per cent of increased interest costs relative to June 2022 up to, but not exceeding, €1,500 per annum;
— work with the Central Bank of Ireland to enhance the supervision of vulture funds in the interests of struggling borrowers; and
— examine the taxation of the banking sector, including the treatment of Corporation Tax loss relief.
Debate resumed on amendment No. 1:
To delete all words after "Dáil Éireann" and substitute the following:
"notes that:
— the European Central Bank (ECB) is independent in the formulation of monetary policy for the Eurozone Area;
— the ECB's objective is to maintain price stability and wishes to ensure a timely return of inflation to its 2 per cent medium-term target; and
— since last summer, the ECB has increased official interest rates on five occasions by a total of 3 percentage points;
acknowledges that:
— the current inflationary dynamic and general increase in interest rates will present increasing challenges for many individuals;
— interest rates are the primary tool to tackle inflation; and
— the increase in official interest rates will have an impact on the level of retail mortgage and other loan interest rates here in Ireland and in other countries across the Eurozone Area;
recognises that:
— the changed interest rate environment will not have a uniform impact on all borrowers and, depending on particular situations, such as the terms of individual contracts, some borrowers will experience a higher increase in interest rates than other borrowers; and
— in addition to the general increase in the cost of living, an increase in interest rates will pose difficulties for many borrowers;
further notes that the reintroduction of mortgage interest relief, even on a selective or tailored basis, is likely to involve significant costs and needs to be considered, not on an ad hoc basis, but in the context of a range of other cost of living measures being provided;
recalls that:
— Budget 2023 was a Cost of Living Budget, incorporating a total package of €11 billion, focused on easing the burden of inflation on households and businesses;
— an overall budgetary package of €6.9 billion has been provided for this year, including adjustments to income tax bands, increases in tax credits and increases in transfer payments, such as social welfare and pension rates;
— in addition, a set of one-off cost of living measures, amounting to over €4.1 billion, took effect from the final quarter of last year, including an extension of the reduction in excise duties and Value-Added Tax on electricity and gas to end-February, three €200 electricity credits and other social welfare and expenditure measures; and
— this built on some €3 billion in support provided in advance of Budget 2023;
furthermore, notes that:
— there is a strong consumer protection framework in place for borrowers who may experience repayment difficulty due to rising interest rates or the cost of living more generally;
— all Central Bank of Ireland regulated lenders and credit servicers, both banks and 'non-banks', are required to follow the provisions of the relevant statutory consumer protection codes, including the Consumer Protection Code and the Code of Conduct on Mortgage Arrears;
— in particular, all cases of mortgage repayment difficulty have to be handled positively and sympathetically by a lender or servicer with the objective at all times of assisting the borrower to meet his or her mortgage obligations, and regulated entities must work with co-operating borrowers to, if possible, put in place a suitable alternative repayment arrangement;
— the Governor of the Central Bank of Ireland has recently indicated that the Central Bank expects firms to be prepared and to be proactive in supporting their customers to navigate the changing economic environment; and
— there are a number of public initiatives to assist people who are in mortgage or other debt difficulty, such as the Abhaile service, which is made up of the Insolvency Service of Ireland, the Legal Aid Board, the Money Advice and Budgeting Service and the Citizens Information Board, which provides free financial advice and, where appropriate also, legal advice to people experiencing difficulty with their mortgage; and
therefore:
— supports the Central Bank of Ireland as it continues to supervise and engage with regulated firms to ensure that such firms use all their range of forbearance for borrowers facing repayment difficulty;
— in particular, encourages the Central Bank of Ireland to continue its engagement with 'non-bank' regulated firms, to ensure that the suite of products provided to their customers who are experiencing difficulty is in line with the Bank's expectations;
— calls on the Central Bank of Ireland to ensure that all lenders assess all switching applications in a prudent and fair manner, regardless of the borrower's current mortgage provider; and
— notes that much progress has been made in recent years in reducing the level of mortgage arrears, including during the Covid-19 period, and calls on mortgage creditors and relevant public bodies to continue their efforts to further tackle existing mortgage arrears cases.
(Minister for Finance)
Amendment put:
The Dáil divided: Tá, 73; Níl, 60; Staon, 0.
Tá
- Brophy, Colm.
- Browne, James.
- Bruton, Richard.
- Burke, Colm.
- Butler, Mary.
- Byrne, Thomas.
- Cahill, Jackie.
- Calleary, Dara.
- Cannon, Ciarán.
- Carey, Joe.
- Carroll MacNeill, Jennifer.
- Chambers, Jack.
- Collins, Niall.
- Costello, Patrick.
- Coveney, Simon.
- Creed, Michael.
- Crowe, Cathal.
- Devlin, Cormac.
- Dillon, Alan.
- Donnelly, Stephen.
- Donohoe, Paschal.
- Duffy, Francis Noel.
- English, Damien.
- Farrell, Alan.
- Feighan, Frankie.
- Flaherty, Joe.
- Flanagan, Charles.
- Fleming, Sean.
- Foley, Norma.
- Griffin, Brendan.
- Harris, Simon.
- Haughey, Seán.
- Heydon, Martin.
- Higgins, Emer.
- Hourigan, Neasa.
- Humphreys, Heather.
- Kehoe, Paul.
- Lahart, John.
- Lawless, James.
- Leddin, Brian.
- Madigan, Josepha.
- Martin, Catherine.
- Martin, Micheál.
- McAuliffe, Paul.
- McConalogue, Charlie.
- McGrath, Michael.
- McHugh, Joe.
- Moynihan, Aindrias.
- Moynihan, Michael.
- Murnane O'Connor, Jennifer.
- Naughton, Hildegarde.
- Noonan, Malcolm.
- O'Brien, Darragh.
- O'Brien, Joe.
- O'Callaghan, Jim.
- O'Connor, James.
- O'Dea, Willie.
- O'Donnell, Kieran.
- O'Dowd, Fergus.
- O'Gorman, Roderic.
- O'Sullivan, Christopher.
- O'Sullivan, Pádraig.
- Ó Cathasaigh, Marc.
- Ó Cuív, Éamon.
- Phelan, John Paul.
- Rabbitte, Anne.
- Richmond, Neale.
- Ring, Michael.
- Ryan, Eamon.
- Smith, Brendan.
- Smyth, Niamh.
- Smyth, Ossian.
- Troy, Robert.
Níl
- Andrews, Chris.
- Bacik, Ivana.
- Barry, Mick.
- Berry, Cathal.
- Boyd Barrett, Richard.
- Brady, John.
- Browne, Martin.
- Buckley, Pat.
- Cairns, Holly.
- Canney, Seán.
- Carthy, Matt.
- Clarke, Sorca.
- Collins, Joan.
- Collins, Michael.
- Conway-Walsh, Rose.
- Cronin, Réada.
- Crowe, Seán.
- Cullinane, David.
- Daly, Pa.
- Doherty, Pearse.
- Donnelly, Paul.
- Ellis, Dessie.
- Farrell, Mairéad.
- Fitzpatrick, Peter.
- Funchion, Kathleen.
- Gannon, Gary.
- Gould, Thomas.
- Guirke, Johnny.
- Healy-Rae, Danny.
- Healy-Rae, Michael.
- Howlin, Brendan.
- Kelly, Alan.
- Kenny, Gino.
- Kenny, Martin.
- Mac Lochlainn, Pádraig.
- McDonald, Mary Lou.
- McGrath, Mattie.
- McNamara, Michael.
- Mitchell, Denise.
- Munster, Imelda.
- Murphy, Catherine.
- Murphy, Verona.
- Nash, Ged.
- Nolan, Carol.
- O'Callaghan, Cian.
- O'Donoghue, Richard.
- O'Reilly, Louise.
- O'Rourke, Darren.
- Ó Broin, Eoin.
- Ó Murchú, Ruairí.
- Ó Ríordáin, Aodhán.
- Ryan, Patricia.
- Sherlock, Sean.
- Shortall, Róisín.
- Smith, Duncan.
- Stanley, Brian.
- Tóibín, Peadar.
- Tully, Pauline.
- Ward, Mark.
- Whitmore, Jennifer.
Staon
Tellers: Tá, Deputies Hildegarde Naughton and Cormac Devlin; Níl, Deputies Pádraig Mac Lochlainn and Denise Mitchell.
Amendment declared carried.
Question put: "That the motion, as amended, be agreed to."
The Dáil divided: Tá, 73; Níl, 57; Staon, 0.
Tá
- Brophy, Colm.
- Browne, James.
- Bruton, Richard.
- Burke, Colm.
- Butler, Mary.
- Byrne, Thomas.
- Cahill, Jackie.
- Calleary, Dara.
- Cannon, Ciarán.
- Carey, Joe.
- Carroll MacNeill, Jennifer.
- Chambers, Jack.
- Collins, Niall.
- Costello, Patrick.
- Coveney, Simon.
- Creed, Michael.
- Crowe, Cathal.
- Devlin, Cormac.
- Dillon, Alan.
- Donnelly, Stephen.
- Donohoe, Paschal.
- Duffy, Francis Noel.
- English, Damien.
- Farrell, Alan.
- Feighan, Frankie.
- Flaherty, Joe.
- Flanagan, Charles.
- Fleming, Sean.
- Foley, Norma.
- Griffin, Brendan.
- Harris, Simon.
- Haughey, Seán.
- Heydon, Martin.
- Higgins, Emer.
- Hourigan, Neasa.
- Humphreys, Heather.
- Kehoe, Paul.
- Lahart, John.
- Lawless, James.
- Leddin, Brian.
- Madigan, Josepha.
- Martin, Catherine.
- Martin, Micheál.
- McAuliffe, Paul.
- McConalogue, Charlie.
- McGrath, Michael.
- McHugh, Joe.
- Moynihan, Aindrias.
- Moynihan, Michael.
- Murnane O'Connor, Jennifer.
- Naughton, Hildegarde.
- Noonan, Malcolm.
- O'Brien, Darragh.
- O'Brien, Joe.
- O'Callaghan, Jim.
- O'Connor, James.
- O'Dea, Willie.
- O'Donnell, Kieran.
- O'Dowd, Fergus.
- O'Gorman, Roderic.
- O'Sullivan, Christopher.
- O'Sullivan, Pádraig.
- Ó Cathasaigh, Marc.
- Ó Cuív, Éamon.
- Phelan, John Paul.
- Rabbitte, Anne.
- Richmond, Neale.
- Ring, Michael.
- Ryan, Eamon.
- Smith, Brendan.
- Smyth, Niamh.
- Smyth, Ossian.
- Troy, Robert.
Níl
- Andrews, Chris.
- Bacik, Ivana.
- Barry, Mick.
- Berry, Cathal.
- Boyd Barrett, Richard.
- Brady, John.
- Browne, Martin.
- Buckley, Pat.
- Cairns, Holly.
- Canney, Seán.
- Carthy, Matt.
- Clarke, Sorca.
- Collins, Michael.
- Conway-Walsh, Rose.
- Cronin, Réada.
- Crowe, Seán.
- Cullinane, David.
- Daly, Pa.
- Doherty, Pearse.
- Donnelly, Paul.
- Ellis, Dessie.
- Farrell, Mairéad.
- Fitzpatrick, Peter.
- Funchion, Kathleen.
- Gannon, Gary.
- Gould, Thomas.
- Guirke, Johnny.
- Healy-Rae, Danny.
- Healy-Rae, Michael.
- Howlin, Brendan.
- Kelly, Alan.
- Kenny, Martin.
- Mac Lochlainn, Pádraig.
- McDonald, Mary Lou.
- McGrath, Mattie.
- McNamara, Michael.
- Mitchell, Denise.
- Munster, Imelda.
- Murphy, Catherine.
- Murphy, Verona.
- Nash, Ged.
- Nolan, Carol.
- O'Callaghan, Cian.
- O'Donoghue, Richard.
- O'Reilly, Louise.
- O'Rourke, Darren.
- Ó Broin, Eoin.
- Ó Murchú, Ruairí.
- Ó Ríordáin, Aodhán.
- Ryan, Patricia.
- Sherlock, Sean.
- Shortall, Róisín.
- Smith, Duncan.
- Stanley, Brian.
- Tóibín, Peadar.
- Tully, Pauline.
- Whitmore, Jennifer.
Staon
Tellers: Tá, Deputies Hildegarde Naughton and Cormac Devlin; Níl, Deputies Pádraig Mac Lochlainn and Denise Mitchell.
Question declared carried.