Doherty urges Central Bank to “tread carefully” on mortgage rules
Sinn Féin Finance Spokesperson Pearse Doherty TD has said he welcomes the commitment from Central Bank Governor Philip Lane to review the mortgage lending rules when enough data on their impact has been collected.
Deputy Doherty urged caution though saying the Central Bank should “tread carefully” to not give any impression that the spirit of the rules could be undermined.
Deputy Doherty said:
“It was always conceived that these reviews would be monitored and altered as the evidence dictated. In our submission to the consultation process this was a key demand of Sinn Féin.
“The comments by Governor Lane are sensible and in line with Sinn Féin’s position that these rules are necessary but will require tweaking as the evidence points to certain issues.
“We are acutely aware of the immediate impact the rules have had on first time buyers and young families wishing to move on to a more suitable home for growing families.
“Much of these issues come down not to Central Bank rules but poor government policy.
“Higher wages and a proper system of social housing as argued for by Sinn Féin would have a real impact on the ability of working families to afford a home.
“The Central Bank’s job is to regulate to prevent the credit bubble of years gone by which damaged the economy and the lives of so many people when it burst.
“The government’s job is to create an economy where the average worker can afford a home because prices are reasonable and wages are fair.
“Review of the rules is welcome and sensible but I hope the Central Bank treads carefully and does not give any hope to those parties who have learned nothing and are calling for a return to the politics and economics of the bubble.”