A bill proposed by Fianna Fáil to tackle high variable mortgage interest rates has been passed in the Dáil without a vote.
The Central Bank Variable Rate Mortgages Bill was supported by Sinn Féin, Labour, People Before Profit-AAA, the Social Democrats and some Independents.
Supporters argued that banks have failed to pass on the current low rates in Europe and are "ripping off" their customers on variable rates.
However, Minister for Finance Michael Noonan warned the bill was unconstitutional and the Central Bank did not want the power to regulate rates.
The minister said the Government was not pressing their proposed amendment.
The bill now goes to committee stage, where several deputies argued the legal difficulties could be worked out.
Standard variable mortgage rates are an average of 3.6% in Ireland, while the figure across the euro zone is 2%.
That has resulted in a campaign here to get banks to cut interest rates.
Yesterday, Fianna Fáil's Finance Spokesman Michael McGrath said he does not accept that the mortgage legislation it proposed is potentially unconstitutional.
Mr McGrath said when the bill was first debated last July the then Government raised no issues around its constitutionality, and described it as "bizarre" that that this argument was being made now.
This same bill was decisively voted down by the last government.
Mr McGrath said he would much rather legislation of this type was not necessary but in his assessment it was.
Minister for Finance Michael Noonan said the proposed Fianna Fáil mortgage bill was "seriously flawed".
Mr Noonan said the bill has three flaws - some of the provisions appear unconstitutional, the ECB needs to be consulted before the legislation the bill proposes could be enacted and the Central Bank Governor (and his predecessor) both stated that they do not wish to regulate interest rates.
Despite the legislation being passed ensuring the Central Bank uses its likely new powers is expected to be a challenge.
