The pressure Cork families and householders are currently experiencing as a result of soaring mortgage interest rates has been acknowledged by the Tánaiste Micheál Martin.

Deputy Martin was speaking at the opening of Phase 1 of the Cork City to Passage West Greenway last Friday afternoon and he admitted the government recognises the pressure people are under due to continued increases in mortgage interest rates. “It is the European Central Bank that is increasing the mortgage interest," Mr Martin said. 

"The Government has put over €11 billion into the cost of living packages over the last 12 to 15 months, which has been an extraordinary and unprecedented intervention by the government to help people get through the cost of living generally, not just mortgage rates. 

"Having said that, we acknowledge and recognise the pressure that people are under because of the European Central Bank raising interest rates to counter inflation."

The Tánaiste, who is a TD for Cork South Central, said a number of financial initiatives have been rolled out for people in recent months to ease the cost of living crisis. “For example, childcare costs have come down quite significantly, in some areas [by] up to €300, because of the measures we took in the budget and the cost of living package," explained Mr Martin. "Hospital in-patient charges are now gone, both for children and adult inpatient charges. We have a free book scheme being rolled out next September."

"We have reduced taxation in the budget," he added. "We have reduced the drug patient threshold very significantly - it is down to €80. We have brought in a tax credit for renters. All of that helps to meet the costs."

Sinn Féin’s finance spokesperson Pearse Doherty last week brought forward a mortgage interest relief plan to support struggling homeowners, which was rejected by a total of nine votes in the Dáil.

The Tánaiste said measures will be taken in the next budget to try to help alleviate the pressures on people. “We will see what ways we can help people overall in terms of the totality of their costs and their expenditure, and how to reduce that in a sustainable way," he stated. "The taxation commission some years ago recommended the abolition of mortgage interest relief. From about 2014 to 2020, it was eliminated.

“Tax experts said it was unbalanced and it favoured those on higher incomes than those on lower incomes. We will keep this under review."