Sinn Féin's finance spokesperson has called on the Government to introduce mortgage interest relief for homeowners on tracker mortgages, saying it was unfair that Irish banks made a "bonanza" from interest rate hikes.
Pearse Doherty told the Dáil that such a measure could be targeted, tailored and timebound and would assist tracker mortgage holders who face "unbearable" interest rate hikes due to moves by the European Central Bank.
Deputy Doherty said that Irish banks "should be able to absorb" these hikes, given the Central Bank had concluded that the profitability of banks had recovered and was set to be "bolstered" by rising interest rates.
The TD for Donegal appealed to the Government to call on Irish banks not to pass on the interest rate hikes, adding "no household" can budget for interest rates of this order.
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'Very unwelcome'
Speaking earlier, Tánaiste Leo Varadkar said the ECB increasing its rates would be "very unwelcome", especially from tracker mortgage holders who would receive a third letter this year informing them that their repayments were to increase.
Mr Varadkar said that while banks should not take "excessive profits", he accepted that they did have to take other factors into account such as offering low term interest rates to first time buyers and assisting people with deposits in banks.
He said, however, that the rationale of the ECB was that increasing rates would bring down inflation, secure price stability and benefit everyone. He added that there had been a "prolonged" period of low interest rates but that is now ending.
Bank profits
Deputy Doherty said that Irish banks had made €1bn in profits in the first six months, and were in line to make the same again.
He said this was not an issue of excessive profits, it was the fact that we are living in a massive cost-of-living crisis and banks need to do "the right thing."
He added that the Government had introduced mortgage interest relief in the past and a similiar measure was needed to deal with this shock.
The Tánaiste said he would "love" to bring back such a measure but added: "I can't make those types of promises."
He said such relief was introduced when interest rates were much higher while the current rates were considered more "normal" after a long period of low rates.
Mr Varadkar claimed Sinn Féin had learned "nothing across the water" in its demands for a mini-Budget and an energy cap. He described these measures as "populist policies" which were designed to take advantage of people.
Branding the Sinn Féin spokesperson as "Kwasi Doherty", a reference to the former UK Chancellor, the Tánaiste said he used to think it would take two years for Sinn Féin to wreck the economy but not believed it would only take one Budget.
