Local Sinn Féin TD Brian Stanley is calling on the Government to introduce mortgage interest relief to alleviate the pressure on struggling households across Laois.
The tenth increase in interest rates has now been announced and will add to the heavy burden on low and middle income households.
Speaking in the Dáil on a proposal by Sinn Féin, Deputy Stanley called for action.
He said: “The situation we are in at the moment is that we have thousands of householders who are in serious arrears.
“I am meeting mortgage holders across Laois-Offaly, who are struggling. Some 21,400 are confirmed to be in serious arrears. Serious arrears means exactly that.
“Tens of thousands more are in arrears. Some households are paying interest rates of 7%, 8% and 9%. One man I met at the ploughing championships is paying almost 10% to a vulture fund.
“Repayments are rising by thousands of euro each year. This is happening at the same time as the banks are making huge profits – the banks that we and the taxpayer bailed out.
“They are making record profits. AIB profits were recorded at €1.2 billion in the first six months of 2023.
“We are also in the middle of a cost-of-living crisis, with sharp increases in the cost of energy, transport and food. The Irish Times reported recently that grocery inflation is up by 11.5%.
“We do not need The Irish Times to tell us this. You only need to walk into Dunnes Stores, Tesco or any of the multiples on Saturday morning and you will see it.
“Tesco is reporting profits on its Irish operation of €120 million. That is just in this State and not in the North. We heard a lot of hot air from the Government and Ministers, including the Minister of State, Deputy Richmond, before the summer about bringing the supermarkets to heel.
“What actually happened? Nothing happened. What is being done to clamp down on the price gouging by the supermarkets and the big multiples?
“It is in this context of inflation and cost-of-living increases that Deputy Doherty and Sinn Féin are calling for a targeted temporary mortgage interest relief scheme.
“We had mortgage interest relief in the past. The current Minister for Finance called for it to be reintroduced a few short years ago. It is a scheme to support struggling households.
“What we are proposing will cover 30% of the additional interest paid each month, up to a limit of €1,500.
“For example, a mortgage holder with an outstanding balance of €200,000 with 20 years left who has seen his or her interest rates go up from 2% to 4% will now be paying €400 per month extra.
“The scheme we propose will provide some relief for them, and would mean an extra €120 per month, or €1,440 per year, in his or her pocket. That can be the difference between being able to survive from month to month or not being able to.
“This relief would not apply to second homes, holiday homes or rental properties. It would only apply to primary residences.
“It is very important that it is targeted in that way. We developed these proposals in consultation with the PBO. Based on that analysis, for eight months it would cost in the region of €400 million, or €600 million in a full year. This measure is sensible.
“It is affordable and is costed as accurately as it can be. It can be funded by increasing the banking levy and by a portion of the massive State surplus projected this year of in excess of €10 billion.
“Workers and families need real support, not empty promises, and they need it now. They are in serious difficulty.”
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