Central Bank mortgage rules
Senator Marc MacSharry defends his criticism of the Garda appointment and asks for a debate on the Central Bank’s proposed 20% mortgage deposit requirement, arguing it would unfairly disadvantage young families.
On Senator Pat O'Neill's point about the Garda Commissioner, while on a personal level I wish her well and hope she will do a good job, Senator Mark Daly was perfectly within his rights to make a legitimate point. It is a fact that the person in question was deputy commissioner when many of these issues came to light. That is worth noting and remembering.
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Is the Senator expressing confidence in her?
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I expressed hope, not confidence.
Will the Leader arrange a debate on the contribution of the Governor of the Central Bank in recent days? I believe he is wrong and would like to see what science informs his push for 20% deposits. I worked in the building society sector more than 20 years ago, long before there was a boom, and the policy was to seek a 10% deposit. In fact, one could obtain an additional 2% if one had a bond. Of course, one also had to have a clear income and savings record and there were clear metrics in terms of the multiples of one's salary or the main salary plus the second salary with which one had to comply.
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That was before the cowboys were on the pitch, some of the people whom the Senator encouraged.
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Long after the horse has bolted, the Central Bank is attempting to close a door it need not even leave ajar. The reality is that people are struggling and will struggle to get on the housing ladder. Appropriate regulations on lending are required. There is no need to discriminate against young families starting off, which is precisely what a measure such as this will do. It will not affect Governor Honohan in the ivory tower on Dame Street or anybody in these Houses, given the salaries and supports we have available, but it will affect many others throughout the country. It is discrimination. I do not like to disagree with my learned colleague, Senator Sean D. Barrett, but he, too, is wrong on this issue of the 20% deposit. There is no science whatsoever that can take from what is a discriminatory move by the Governor of the Central Bank.