Sinn Féin spokesperson on Finance, Pearse Doherty TD, has called on the government to get a grip on the cost-of-living crisis as a Central Bank report warned that inflation would remain elevated in the coming years.
The Donegal TD also called for an increase in capital investment as government failures in housing and infrastructure delivery pose a real threat to economic competitiveness.
Speaking this morning, Teachta Doherty said:
“Households continue to struggle under a cost-of-living crisis as prices continue to rise.
“Today’s report by the Central Bank has increased inflation forecasts for this year and next.
“The government must do more to reduce the cost of living.
“For too many workers, wages have not kept pace with inflation.
“Those on fixed incomes and the most vulnerable in our society have seen their incomes fall.
“Households continue to face exorbitant energy bills while, as the Central Bank makes clear today, energy prices have fallen across Europe.
“Childcare costs remain too high, with rents rising and unaffordable.
“The government has abjectly failed to tackle rip-off prices that are unsustainable for so many.
“It is also clear from today’s Central Bank report that the government’s deepening failure in housing and infrastructure delivery is a growing threat to our economic prospects.
“Increased capital investment to address these failures and our growing infrastructure deficit is needed now, and in the years ahead.
“Sinn Féin in government would reduce the cost of living and deliver a public investment programme that supports economic development for our communities.”
Sinn Féin spokesperson on Finance, Pearse Doherty TD, has called on the government to support his proposals to introduce temporary mortgage interest relief for struggling homeowners.
Deputy Doherty was speaking ahead of his party’s motion on the issue, which will be debated when the Dáil returns on Wednesday.
He said that the government cannot continue to sit on their hands while homeowners see their annual mortgage repayments increase by thousands as a result of the tenth ECB interest hike since last summer.
Teachta Doherty said:
“The Fianna Fáil-Fine Gael government has been sitting on their hands, doing nothing as more and more families come under pressure from rising mortgage interest rates.
“The ECB last week announced its 10th interest rate hike since July 2022.
“In that time, repayments have increased by thousands of euros a year for tens of thousands of families.
“It’s time for action now. The government has done nothing and the situation has gone from bad to worse for so many.
“Even before last week’s announcement, the Central Bank estimated that one in five households would see their annual mortgage costs spiral by more than €5,700 as a result of rate hikes, with two in five seeing their annual mortgage costs rise by more than €3,000.
“Now these costs will increase further for so many. This is a massive income shock for struggling households.
“Sinn Féin has been calling for the introduction of a time-limited mortgage interest relief for homeowners hit by interest rate increases for months.
“The government must now provide mortgage interest relief, applicable to principal private residences, equivalent to 30 percent of increased interest costs relative to June 2022, with a maximum benefit per household of €1,500 per annum.
“I urge the government to support our motion, and for Minister Michael McGrath to implement our proposals in next month’s budget.”
Sinn Féin spokesperson on Finance and Donegal TD, Pearse Doherty, has again called on the banking sector to bring forward credible financing solutions to assist homeowners affected by defective blocks.
Speaking today, Teachta Doherty said:
“Victims of the defective block scandal have been badly let down by the redress scheme brought forward by the government.
“So many face significant funding shortfalls in their efforts to rebuild their homes and lives.
“They are also facing rising mortgage costs on properties that are crumbling and in many cases are demolished.
“This situation is not sustainable and must be addressed.
“Over the past several months, I have engaged extensively with the Banking and Payments Federation, retail banks, the Central Bank and Minister for Finance on this issue.
“And have underlined the need for bespoke arrangements to be put in place to assist homeowners with rising mortgage costs and to address finance shortfalls including the provision of bridging finance.
“It is now time for the banks to bring forward credible financing options without delay.
“It is in the interest of banks that these homes are remediated, and their asset values restored.
“At my request the Oireachtas Finance Committee invited the Banking and Insurance Redress Focus Group before it in July, to give voice to the challenges they are facing on the ground.
“It is time for the banks to grasp the severity of this issue and bring forward a credible solution without delay.”
Sinn Féin spokesperson on Finance Pearse Doherty TD has called for the introduction of temporary and targeted mortgage interest relief to support households.
This comes as the European Central Bank announced its 10th interest rate hike since July of last year.
Teachta Doherty said:
“Today the ECB announced its 10th interest rate hike since July, increasing its key interest rate to an all-time high.
“This is an extremely worrying time for so many households who will continue to see their mortgage interest costs rise.
“Before today’s announcement the Central Bank estimated that 1 in 5 households would see their annual mortgage costs spiral by more than €5,700 as a result of rate hikes.
“With 2 in 5 seeing their annual mortgage costs rise by more than €3,000.
“With today’s announcement, these costs will increase further for so many.
“This is a massive income shock for households in the grip of a wider cost of living crisis.
“For months Sinn Féin have called for the introduction of temporary and targeted mortgage interest relief to support struggling households.
“That must be introduced in next month’s Budget.
“Households struggling with spiralling mortgage costs need support and they need it now.”
Sinn Féin spokesperson on Finance, Pearse Doherty TD, has called for the introduction of temporary and targeted mortgage interest relief to support struggling households.
The Donegal TD was speaking after the Central Statistics Office (CSO) found that mortgage interest costs had risen by 51 percent in the past 12 months.
Speaking today, Teachta Doherty said:
“Yesterday the CSO released its inflation figures for August.
“The Consumer Price Index shows that the cost of living continues to rise while electricity prices did not fall, despite the sharp reduction in wholesale prices.
“For so many households, the cost of living crisis is getting worse.
“In the past year, mortgage interest costs have increased by 51 percent.
“This is a massive income shock for households.
“The Central Bank estimates that 1 in in 5 households will see their annual mortgage costs increase by €5,700.
“Targeted and temporary mortgage interest relief should be introduced to support struggling households and address this mortgage misery.
“Yesterday’s figures also show that the price of petrol, diesel and home heating oil all rose significantly in the past month.
“The Government’s plan to increase taxes on each is the last thing households need at this time of challenge and financial worry.
“The hikes in excise and the carbon tax should not proceed as workers and families contend with a cost of living crisis.”
Sinn Féin spokesperson on Finance, Pearse Doherty TD, has responded to today’s announcement by the banking industry in response to the mortgage misery so many households are facing.
The Donegal TD warned that the initial eligibility criteria for households to switch could be of no value whatsoever for tens of thousands of mortgage prisoners.
Speaking today, Teachta Doherty said:
“On the 4th August I called on the Minister to convene a meeting with the Central Bank and banking industry to develop a strategy to support those facing soaring interest rates.
“While the Minister met with the sector last week, what households need to see are results.
“It appears that today’s announcement will do little to help tens of thousands of mortgage prisoners who had their mortgage loans sold to vulture funds.
“These sales were supported by Fianna Fáil and Fine Gael.
“There are elements of today’s announcement by the banking sector which I welcome – in particular the streamlined customer engagement framework between MABS and vulture funds, and dedicated phonelines by the retail banks for mortgage prisoners that want to switch.
“However, the initial eligibility criteria announced by the main lenders will mean nothing to a significant cohort of mortgage prisoners.
“Those on split mortgages will be excluded.
“Those who have had their loans restructured will struggle to meet these criteria given they are being charged interest rates as high as 10 percent by vulture funds.
“Many of those no longer in arrears or in a restructure will be excluded as their credit record will still be impaired.
“This suggests that today’s statement will mean nothing for tens of thousands of mortgage prisoners.
“What we need to see now is analysis from the Central Bank regarding how many mortgage holders could switch with these eligibility criteria in place – and I will be writing to the Central Bank to clarify this question.
“What is clear is that these mortgages should never have been sold to vulture funds, and banks have a responsibility to right a wrong and provide a path for mortgage prisoners to return to the mainstream mortgage market.
“It is also incumbent on the Government to support households that are suffering from this income shock.
“1 in 5 households are set to see their annual mortgage costs rise by more than €5,700.
“It is incumbent on the Government to support households that are suffering from this income shock.
“Sinn Féin have called for the introduction of temporary and targeted mortgage interest relief to support struggling households.
“The Government must act.”
Sinn Féin spokesperson on Finance Pearse Doherty TD has responded to changes announced today to the Defective Concrete Products Levy by the Minister for Finance.
Today’s announcement follows warnings raised by Teachta Doherty with the Department of Finance on 26th October that precast products would be subject to the levy despite false statements made by Paschal Donohoe to the contrary.
The Donegal TD again called for the tax on new homes to be scrapped.
Speaking today, Teachta Doherty said:
“On the 1st of September the Government pushed ahead with their deeply flawed concrete products levy, despite all the warnings that this levy will result in higher housing and building costs for workers and families.
“This is ultimately a tax on new homes.
“In October Minister Paschal Donohoe made repeated claims that the levy excluded precast products, from blocks and paving to lintels and posts – these claims were false.
“It was clear as soon as the Finance Bill was published that poured concrete, a key element of precast products, would be subject to the levy.
“I raised this directly with Department officials at the Finance Committee on the 26th October.
“The false statements from Minister Donohoe led to confusion within the construction sector and among wider industry.
“Minister Donohoe should correct the Dáil record.
“The Government applied a guillotine on this legislation – ensuring that the levy was not properly scrutinised.
“I warned at Report Stage of the Finance Bill that there was a flaw in the levy that would come back to haunt the Government.
“This has now come to pass with the Minister scrambling to address a flaw I raised last year.
“I believe there could be other problems with the legislation underpinning this flawed levy which I have raised directly with Revenue.
“While I welcome the fact that Minister McGrath will now respond to the issue I raised with the Department in October last year, the Government should scrap this flawed levy, which will increase construction costs and house prices.”
CRÍOCH/ENDS
NOTES TO EDITOR:
On 26th October 2022, Teachta Pearse Doherty raised the drafting of the legislation underpinning the Defective Concretes Block Levy with the Department of Finance at the Finance Committee, warning that precast products would be subject to the charge, despite statements to the contrary by then Minister for Finance, Paschal Donohoe.
You can find a transcript of those proceedings here and an extract below:
Deputy Pearse Doherty: Can I just clarify because I do not think I made my point clear here, to assist Ms O’Callaghan? This relates to a person who is producing concrete and selling to the domestic market, which obviously has a levy in place. That person, for example, has one company that has been set up as Pearse Doherty Concrete Supplies Limited but also has a company called Pearse Doherty Precast Concrete Sills Limited on the same site. If my concrete company is supplying and pouring concrete, which is captured under the levy, to create the sills, slabs or lintels, does a charge apply, since poured concrete is included?
Ms Jacqueline O’Callaghan: They are no longer within the list of products that are subject to the levy.
Deputy Pearse Doherty: Is poured concrete included?
Ms Jacqueline O’Callaghan: Poured concrete is. If one is supplying poured concrete, then it is within the charge. We would have to go through the example that the Deputy is giving. We would need more details about the type of poured concrete. I dare say, when the Deputy talks about poured concrete, that he is talking about a lorry coming and supplying poured concrete to another place. If someone was creating a batch then supplying it, we would have to go through the details to see exactly what the process is.
Deputy Pearse Doherty: There is a certain danger here. In the past, concrete would have been poured into the frames for lintels, left to cure for a while, then taken out and the frames would be used again. If there is a situation with two separate companies rather than one, then the concrete that is being used for the pre-cast will be subject to the charge.
Ms Jacqueline O’Callaghan: If it is poured concrete within the meaning here, then it would be, but we would have to go through the details. We would need an example of a specific place to see how the details would apply. The Deputy is talking about two companies operating in one plant.
Deputy Pearse Doherty: Exactly. There are two companies, which will happen numerous times. I do not know if they are still operating but I know of a company that was doing that. If companies are supplying to the domestic market because they have their concrete wagons on-site, they will have a separate company set up. They are invoicing internally. Therefore, the concrete that is used on sills, lintels and kerbs would be subject to the tax.
Ms Jacqueline O’Callaghan: We would have to look at a specific case to see exactly how it is operating.
Deputy Pearse Doherty: Part 4 of the VAT directive defines poured concrete as the supply of concrete that is ready to pour. It does not suggest that it even has to be in a lorry, just that it is ready to pour. It can come straight out of the batch. It excludes the margin scheme, which is double taxation. It appears that if two companies are operating, with one supplying the concrete to pre-cast, then they are captured.
Ms Jacqueline O’Callaghan: It would appear that way. I cannot say for certain because I do not have the facts. I am not an expert in this market so I would have to pass this back to Mr. Hennessy.
…
Ms Jacqueline O’Callaghan: There are other examples that we could go through. In group companies, there are many ways to transfer items without going through a sale or even a legal transfer. As I said, that is how we understand the policy intention.
Deputy Pearse Doherty: The same reason that the Revenue Commissioners have captured that applies in the example I have, which is not about a developer but a company manufacturing pre-cast concrete. It is captured even though pre-cast concrete is excluded, since the material going into the moulds is now included. I have significant concerns about this.
Sinn Féin spokesperson on Finance Pearse Doherty TD has responded to today’s roundtable meeting between the Minister for Finance, Central Bank, banks, vulture funds and other stakeholders.
On 4th August Teachta Doherty called on the Minister for Finance to convene a meeting with the regulator and banking sector to chart a way forward for those struggling with soaring interest rates.
Speaking today, Teachta Doherty said:
“I welcome today’s meeting between the Minister for Finance and the banking sector.
“On the 4th August I called on the Minister to convene a meeting with the Central Bank and banking industry to develop a strategy to support those facing soaring interest rates.
“But what is now needed are results.
“Households have faced a massive income shock as a result of soaring interest rates – with 1 in 5 households set to see their annual mortgage costs rise by more than €5,700.
“Households that had their mortgages sold off to vulture funds have seen their interest rates soar to as high as 10 percent, effectively becoming mortgage prisoners.
“These sales were supported by Fianna Fáil and Fine Gael and were carried out by many of the banks and vulture funds that attended today’s meeting.
“They have a responsibility to right this wrong and to provide a path for these households to return to the mainstream mortgage market.
“To date we have seen little evidence of households switching from vulture funds to mainstream banks.
“Therefore, today’s meeting must result in real action rather than simply being a box-ticking exercise.
“How many households have tried to switch from vulture funds to mainstream lenders in the past 12 months?
“How many have been successful and how many have not?
“These are the questions to the Central Bank and Government should be asking and acting upon.
“It is also incumbent on the Government to support households that are suffering from this income shock.
“Sinn Féin have called for the introduction of temporary and targeted mortgage interest relief to support struggling households.
“The Government cannot stand idly by.”
Sinn Féin spokesperson on Finance Pearse Doherty TD has called on Minister Donohoe to correct the Dáil record regarding the scope of the Government’s flawed levy on concrete products which is due to come into effect from 1st September.
The Donegal TD said that the Minister’s claims that the levy would exclude pre-cast products were false, causing confusion and uncertainty in the construction sector and wider industry.
Speaking today, Teachta Doherty said:
“On Friday the Government will push ahead with their deeply flawed concrete products levy, even despite all the warnings that this levy will result in higher housing and building costs for workers and families.
“This is ultimately a tax on new homes which will push up building costs and house prices.
“In October Minister Paschal Donohoe made repeated claims that the levy excluded precast products – from blocks and paving to lintels and posts.
“These claims were false.
“It was clear as soon as the Finance Bill was published that this was not the case, and that poured concrete, a key element of precast products, would be subject to the levy.
“I raised this directly with Department officials at the Finance Committee on the 26th October.
“This has led to confusion within the construction sector and among wider industry, with the levy now to take effect in the coming days.
“Minister Donohoe should correct the Dáil record.
“More importantly, the Government should scrap this flawed levy, which will increase construction costs and house prices.”
