More evidence emerges every day of the consequences of the housing emergency happening on the Government’s watch. Earlier this week, Galway Chamber warned how businesses are struggling to keep their doors open while their staff have nowhere to live. Today, a survey of businesses from Dublin Chamber found that a lack of affordable housing is the biggest struggle those businesses face.

The housing crisis is hitting people from all sides. Rising mortgage rates are putting huge pressure on people’s finances as they struggle to keep on top of hike after hike. As the Taoiseach is aware, last month the European Central Bank increased its main lending rate for the sixth time since July last year, with the prospect of more increases coming down the tracks. These hikes mean taking a hit of thousands of euro a year for many, with some now paying interest rates as high as 8%. These are colossal sums of money and totally unaffordable for people on ordinary incomes. This barrage of mortgage interest hikes comes in the middle of a cost-of-living crisis, with people already to the pin of their collar as they struggle to keep on top of bills. The Taoiseach need not just take my word for it. Free Legal Advice Centres has warned that people are at risk of falling into arrears, while the Money Advice & Budgeting Service has warned that these hikes are having disastrous effects. Hike after hike has left mortgage holders at their wits’ end. They are anxious that they will not be able to make their finances stretch.

People are left struggling with crippling rents and rising house prices due to the Government's failure to deliver affordable housing. People need help and they need it now, yet the Government sits on its hands. There is ample room within the public finances to help. This is about choices and the Government has a choice facing it now. Last night, the Dáil debated Sinn Féin’s proposal to provide relief to homeowners hit by rising interest rates. I emphasise that these are tailored, targeted and time-limited supports that will be a life raft for people who need them. Our proposals would support struggling mortgage holders by up to €1,500. They are sensible and necessary measures. The Dáil will vote on Sinn Féin’s proposals this evening, so it is decision time. The Government can and must act with urgency. In opposition, the Minister for Finance, Deputy Michael McGrath, was fully committed to mortgage interest relief and that is what he must deliver now in government. Ní mór don Rialtas gníomhú anois lena chinntiú go bhfaigheann úinéirí tí faoiseamh ríthábhachtach ó mhéaduithe úis ar mhorgáistí. Tá moltaí saindeartha, teoranta ó thaobh ama, leagtha amach ag Sinn Féin. Anocht, ag tacú lenár moltaí, is féidir linn tacaíocht a thabhairt d’úinéirí tí a airíonn go bhfuil siad sáinnithe agus iad ag streachailt le greim a choinneáil faoin bhfiacail.

Every mortgage interest rate hike is a body blow for struggling households. Every hike is a shock that is becoming harder and harder to absorb. My question is straightforward. Will the Taoiseach back Sinn Féin’s proposal for a time-limited mortgage relief and give homeowners the break they so desperately need?

I thank the Deputy for her question. I start by acknowledging the presence of a large number of third year students from CBS Portlaoise who are in the Visitors Gallery. They are most welcome.

The Deputy mentioned evidence relating to the housing crisis in her introductory remarks. There is real evidence today of the kind of progress we are now making when it comes to housing, released by the Central Statistics Office, CSO, in the past couple of hours. We know the number of new homes built in the first quarter of the year is up nearly 20% on the first quarter of last year, with 6,760 new homes built in the first three months of this year alone. A 20% increase in new homes being built this quarter compared with last quarter is something that even somebody as mean-spirited as the Deputy should be able to acknowledge and I hope she will do so in her follow-up remarks.

The Taoiseach should not make personal remarks like that.

She can also acknowledge that there has been a 40% increase in the number of apartments built in the first quarter of this year compared with last year. She may wish to acknowledge as well that the number of new apartments built is double what it was three years ago and five times what it was five years ago. At regional level, it is the south-west region, covering counties Cork and Kerry, that has seen the biggest increase.

With regard to mortgages, I understand that many people are seeing big increases in their mortgage payments, particularly people who have tracker mortgages.

They are receiving letters in the post, every couple of weeks at this stage, from the bank, telling them that their mortgage has gone up. Somebody with a mortgage of maybe €250,000 has seen an increase of about €500 a month in their mortgage payment. That is a lot of money, even for somebody on a good income, so I absolutely understand the impact that is having on a lot of households. But tax measures are a matter for the budget, and when it comes to the budget we will consider all the different suggestions and ideas for tax concessions, and there will be a tax package in the budget but it will not be possible to include everything in it. It is noteworthy that in Sinn Féin's alternative budget produced by Deputy Doherty, only back in September, mortgage interest relief was not included, even though mortgage interest rates were going up at the time and the ECB signalled that there would be significant further rises. When Sinn Féin had to make choices, it chose not to include mortgage interest relief in its package. When it comes to September-October, when we have a budget to put together, there will be a tax package and we will consider mortgage interest relief as part of that tax package, but we have to consider all the other proposals that come forward for tax relief too.

We also do need to bear in mind the context. Average mortgage rates in Ireland, which had been high by European standards, are now at the lower level, by European standards. We also need to bear in mind that we have had a very prolonged period of low interest rates, almost unprecedented in history. Deputy McDonald says the measures Sinn Féin proposes are time bound, but she does not say when the end point is, because she cannot predict that mortgage interest rates are going to go down again. We had a lot of people for a very long period of time who had the benefit of very low interest rates. Now interest rates are coming back up to something quite close to the historical average and we need to be honest with people about that and not say that things are just time bound. We cannot guarantee people that interest rates are going to go back down to 1% or 0% again. That might not happen.

Could I also extend a welcome to the lads from Portlaoise. Fáilte. It is great to see them here.

I am glad that the Taoiseach recognises that there has been a succession of hikes in mortgage interest rates. Some people are paying a rate of 8% and there are further hikes in prospect. I am sure the Taoiseach does not contest that. The ECB will meet on Thursday week. For mortgage holders who are now struggling, it is a matter of great fear and anxiety that they are going to see yet another hike. The question then arises of what to do about it. If I heard the Taoiseach correctly, his position is that mortgage holders are simply to sit tight until September or October. I put it to the Taoiseach that that is a wholly unrealistic ask of households in the grip of a cost-of-living crisis where we have the highest electricity costs across Europe. I am sure the Taoiseach knows and would acknowledge that people are struggling, so simply to say to them to sit tight and hold tight is not an acceptable response from the Government. I have asked the Taoiseach to support our proposal, which will go to a vote this evening. If he is not going to support our proposal, what is he going to do now-----

The Deputy's time is up.

-----for the tens of thousands of households that are struggling to pay their mortgage?

The time is up.

According to FLAC and to MABS, they now run the risk of arrears-----

I thank Deputy McDonald.

-----and real hardship. What is the Taoiseach's answer if he does not like ours?

My answer is twofold. In the last budget, which only kicked in in January, there was a tax package that I fought hard for. That tax package resulted in income tax being reduced for 2 million people, including the vast majority of mortgage holders in the State and Deputy McDonald's party voted against that. It is a simple fact that workers in Ireland would pay more income tax under Sinn Féin, and that people would take home less pay under Pearse than they do under Paschal.

Actually it is Michael now.

Sinn Féin voted against that. People today would pay more income tax under Sinn Féin than they do under the current coalition. When it comes to the next budget, there will be a tax package.

In the autumn.

It will be as generous as we can afford, but we will have to take into account all of the other suggestions that are put forward for tax concessions. It does not make sense, and it would not be prudent or responsible, for us to come into this House every month or every other month and make income tax changes. That is not the way to run a country. I hope if Deputy McDonald ever has the privilege to be Taoiseach that she does not run the country like that.

I call Deputy Nash.

The Government is just after changing tax last week.

Deputy Doherty should allow Deputy Nash to speak.