Sinn Féin spokesperson on Finance, Pearse Doherty TD, has responded to the European Commission’s proposals on the European fiscal rules.
Speaking today, the Donegal TD said:
“Today, the European Commission has brought forward its proposals to change the fiscal rules.
“Sinn Féin have been consistent in our view that the fiscal rules were not fit for purpose and required radical reform.
“Their design required Member States to consolidate during economic downturns; deepening recessions, increasing unemployment and harming economic recovery.
“The targets that underpinned them were arbitrary and unsuitable for the Irish economy.
“Their surveillance undermined the sovereignty of Member States.
“What is required is the replacement of damaging rules with flexible standards that promote investment in the challenges we face - from housing provision and infrastructure deficits to climate action and improved health outcomes.
“What the Commission have proposed today is an improvement on the damaging rules of the past but it is clear that previous proposals have been diluted to placate the German government.
“A number of issues that Sinn Féin argued consistently and strongly against as unworkable have been removed.
“However, while certain benchmarks that were never suitable for the Irish economy have been removed, arbitrary targets remain in place that could damage the economy, services and societies of Member States that deviate from them.
“As the proposals are brought before the European Parliament and Council, it is crucial that the final proposals adopted respect the sovereignty of Member States, abandon the failed rules of the past and allow for investment in the challenges that face our economy and society.”
Sinn Féin spokesperson on Finance, Pearse Doherty has called for the introduction of a temporary Mortgage Interest Support Scheme to provide relief to homeowners hit by rising interest rates.
This comes as the Dáil will debate his party’s motion today that calls on the government to act on this issue.
Teachta Doherty said:
“In the grip of a cost of living crisis, rising mortgage rates are putting homeowners under increased financial pressure.
“In the context of last week’s forecast of a General Government surplus in excess of €10 billion this year, it is clear that action can be taken to support them.
“Last month, the European Central Bank increased its main lending rate for the sixth time since July 2022 to 3.5 percent.
“Mortgage repayments are rising by colossal amounts – by thousands of euros a year for many, with some now paying interest rates as high as 8%.
“The Free Legal Advice Centre have said that many are now at risk of falling into arrears, while MABS have warned that recent interest rate hikes are having disastrous effects.
“Rising mortgage rates are also putting the possibility of buying a home beyond the reach of aspiring first-time buyers, many of whom continue to suffer with crippling rents and rising house prices due to the government’s failure to deliver affordable housing.
“Sinn Féin has repeatedly called for the introduction of temporary mortgage interest relief, which would support struggling mortgage holders by up to €1,500.
"The government has failed to listen with the situation approaching a crisis point for many.
“The government can and must reverse its position and mandate the Minister for Finance, Michael McGrath, to commit to his previous position on this issue in 2018 when he supported mortgage interest relief.
“Such a measure is sensible and necessary.”
Sinn Féin's mortgage interest relief proposals can be read here.
Sinn Féin spokesperson on Finance, Pearse Doherty TD, has said the government can and must introduce time-limited mortgage interest relief for homeowners hit by interest rate increases.
The Donegal TD was speaking as he launched his party’s motion, which will be debated in the Dáil on Tuesday, that calls on the government to act on this issue.
Teachta Doherty said:
“Rising mortgage rates are putting homeowners under severe financial pressure.
“Particularly in the context of last week's forecast of a General Government surplus in excess of €10 billion this year, it is unforgivable that the government is doing nothing to help them.
“Last month, the European Central Bank increased its main lending rate for the sixth time since July 2022 from 0 percent to 3.5 percent, and is due to meet again in the next two weeks to consider further increases.
“Mortgage repayments are rising by colossal amounts - thousands of euros a year.
“Some people are now paying interest rates of up to 8%.
“People are seriously struggling as a result and the Free Legal Advice Centre tells us that many are now at risk of falling into arrears.
“Rising mortgage rates are also putting the possibility of buying a home beyond the reach of another generation of aspiring first-time buyers, many of whom are already suffering with crippling rents and rising house prices due to the government’s failure to deliver affordable housing.
“Sinn Féin has repeatedly called for the introduction of temporary mortgage interest relief, which would support struggling mortgage holders by up to €1,500.
"The government has failed to listen and now the situation is approaching a crisis point if they continue to refuse to take any action.
“The government can and must reverse its previous position and mandate the Minister for Finance, Michael McGrath, to commit to his previous position on this issue in 2018 when he supported mortgage interest relief.
“Such a measure is sensible, affordable and necessary.”
As Ulster Bank closes its remaining 63 branches and ATM services in the State, Sinn Féin spokesperson on Finance Pearse Doherty TD has called for measures to protect access to cash and branch services.
Speaking today Teachta Doherty said:
“Today’s closure of Ulster Bank’s 63 remaining branches and ATM services is a sad day for communities and small businesses.
“It is a blow to the Irish banking sector.
“It is crucial that Ulster Bank and receiving banks support customers who are in the process of switching their banking services to new providers.
“Today also underlines the need for measures to protect access to cash and branch services.
“In recent years we have seen banks remove and run-down branch and cash services.
“Access to cash is crucial for citizens, business and communities.
“Reduced access to cash risk further financial exclusion and is particularly damaging to elderly and low-income groups.
“We now need legislation to protect access to cash, as has been done in Sweden and Britain, and Sinn Féin are working on legislation to make this a reality.
“Access to branch services also remains critical to communities and business.
“There is scope and a need to strengthen the Central Bank’s Consumer Protection Code with respect to branch services, and Sinn Féin will be outlining our proposals to the regulator as part of its public consultation on the Consumer Protection Code later in the year.”
Sinn Féin spokesperson on Finance, Pearse Doherty, has commented on the Stability Programme Update for 2023, published today.
Teachta Doherty said:
“The Stability Programme Update projects strong tax receipts in the years ahead and an improvement in the position of the public finances.
“This is welcome and strengthens the state’s capacity to address persistent failures by this government in the provision of housing and health services.
“The government’s abject failure in housing has caused untold pressure and despair for renters, those wishing to purchase their first home, and those now facing eviction.
“What today’s SPU underlines is that there is no excuse and nowhere to hide for this government in addressing this and other challenges our people and economy face.
“Addressing the housing disaster, waiting lists in our health service and child poverty is not a question of resources but a question of political will and political choices.
“Where this government has failed, Sinn Féin is determined and ready to deliver change for workers and families.
“Households and businesses have withstood significant economic headwinds in the past year, not least the high level of inflation.
“Today’s Stability Programme Update has revised downwards the level of inflation for this year.
“While welcome, the increased cost of living workers and families have faced cannot be overstated.
“Today’s forecasts reflect the state’s capacity to provide targeted measures to support households in the months ahead.”
Sinn Féin spokesperson on Finance, Pearse Doherty TD, has called on banks to increase the deposit rates for savers.
The Donegal TD was speaking as the income Irish banks make on deposits has soared following successive interest rate hikes by the ECB.
Teachta Doherty said:
“Since July, the ECB has increased its deposit rate from 0 to 3 percent.
“In December, Irish-resident banks held just under €97 billion on deposit with the Central Bank.
“Recent interest rate hikes have boosted the interest income of our banks.
“AIB has seen their interest income jump by 20 percent with Bank of Ireland’s rising by 12 percent – increasing their profitability.
“While mortgage interest rates have risen, the banks have been slow to increase interest rates for savers.
“The banks can’t have it both ways.
“As a result of reduced competition in the sector with the withdrawal of Ulster Bank and KBC, there is a risk that banks will continue to squeeze savers.
“Irish banks should not continue to bolster their profits at the expense of savers."
Sinn Féin spokesperson on Finance, Pearse Doherty TD, has called on the Government to introduce targeted and temporary mortgage interest relief to support homeowners with rising interest costs.
The Donegal TD was speaking as new analysis suggests up to 60,000 homeowners have their mortgages held by vulture funds, with no ability to switch lender.
Speaking today, Teachta Doherty said:
“New research by money advice and broker site MoneySherpa.ie suggests that up to 60,000 mortgage-holders are trapped with vultures funds and unable to switch to a different lender.
“These homeowners are now being charged interest rates as high as 9.25 percent, with many to pay thousands of euros in additional interest costs this year.
“Many of these homeowners have no ability to switch or fix their rates.
“Rising interest rates are heaping additional pressure on households that are already struggling with the cost of living crisis.
“Others will see their interest rates increase in the coming period.
“Already, Irish mortgage-holders are charged interest rates that are 50 percent higher than the European average.
“Now is the time to introduce targeted and temporary mortgage interest relief to cushion the blow of these rising interest costs.”
Sinn Féin spokesperson on Finance, Pearse Doherty TD, has called for policy interventions to protect consumers against the rise in scams and fraud.
This comes as Bank of Ireland warns its customers of a wave of fraudulent text messages urging customers to pay outstanding toll charges or update their account details.
Teachta Doherty said:
“Financial fraud and scams are on the rise, posing a growing threat to customers.
“Citizens are now being robbed of millions of euros a year by fraudsters.
“Today’s warning by Bank of Ireland of fraudulent text messages being sent to their customers seeking outstanding toll charges and account details is yet another example of the lengths fraudsters are going to in order to rob citizens,
“People are now faced with a cocktail of tactics being employed by fraudsters – from phishing and vishing to smishing.
“Only last month, FraudSMART warned of highly convincing investment scams which used brochures circulated online that targeted over-55s with a minimum investment of €20,000.
“These scams are being advertised online, on social media, by email and text message. Action must be taken to protect citizens.
“When will mobile providers, online platforms and social media companies take responsibility for the fraudulent content that is being advertised through their platforms to rob citizens?
“There is no requirement for mobile providers, online platforms, social media companies to pay compensation to victims of fraud – that needs to change.
“There is also no requirement for payment service providers to pay compensation to victims of authorised push payment fraud – something that will soon be in place for consumers in the North.
“And we have no system to cross-check the name of the person victims send their money to against the name on the actual account – this is called Confirmation of Payee and has been successfully introduced in the Netherlands and Britain.
“These are actions that could be introduced to protect customers from the rising threat of scams and fraud.”
Sinn Féin spokesperson on Finance, Pearse Doherty TD, has welcomed data from the European Central Bank which makes clear that corporate profits were a key driver of inflation in 2022.
The Donegal TD called on policymakers to reflect on this fact in the months ahead as workers and families continue to bear the brunt of high inflation.
Teachta Doherty said:
“Today's comments by the European Central Bank signal an important moment in the inflation debate.
“For the past year, our own government has called for companies to think twice about increasing workers’ pay, warning that it would worsen inflation.
“This mantra has been repeated ad nauseam by policymakers and Government ministers.
“Today, the ECB has acknowledged that corporate profiteering contributed twice as much to price rises compared to wage increases.
“In the ECB’s own words, the effect of profits on prices has been ‘exceptional’ in the recent period.
“The ECB also makes clear that companies have hiked prices under the cloak of higher costs in order to bolster their profit margins.
“This is an extraordinary development and should give pause to policymakers and government.
“Since the cost-of-living crisis began, we have been repeatedly warned of the risk of a wage-price spiral – despite the fact that wages have failed to keep pace with inflation.
“It is now time to consider the risk of a profit-price spiral.
“Today, we also learned that the pay of Irish CEOs soared in 2022, just as inflation soared for households.
“As prices remain high and the cost-of-living crisis continues to bite, it is time to focus on the role of price-gouging and profiteering in the current economic climate.”
Sinn Féin spokesperson on Finance, Pearse Doherty TD, has again called on government to introduce targeted and temporary mortgage interest relief to support borrowers with rising interest costs.
The Donegal TD was speaking as the ECB are expected to raise interest rates today for the sixth time since July.
Teachta Doherty said:
“Today the ECB is widely expected to increase its interest rate again – this will be the sixth rate hike since July.
“This further rate hike will immediately impact more than 250,000 borrowers who have seen their monthly repayments increase by hundreds of euros since June.
“It will also hit the pockets of thousands of borrowers whose mortgages were sold to vulture funds without their consent.
“Despite false promises by the Taoiseach and government ministers, these mortgage holders are worse off as a result of these sales, with no option to switch or fix their rates, and will face interest rates as high as eight percent in the next few weeks.
“Mortgage-holders will be paying thousands of euros more in interest this year – households that are already struggling under the cost of living crisis.
“Others will see their interest rates increase in the coming period.
“Already, Irish mortgage-holders are charged interest rates that are 50 percent higher than the European average.
“In the grip of a cost of living crisis, it is now time to introduce targeted and temporary mortgage interest relief to cushion the blow of these rising interest costs – this relief could absorb a portion of these interest costs.
“Already the government allows landlords to claim tax relief against 100 percent of their mortgage interest with further tax cuts reported to be on the way.
“As the ECB prepares to increase interest rates again today, the time has come to introduce this temporary and sensible measure to support those who are really struggling under the cost of rising interest costs.”
