According to reports this morning Fine Gael will be forced to admit defeat and push ahead with new legislation that will reduce mortgage rates.
The proposed bill submitted by Fianna Fáil will see the Central Bank being able to regulate mortgage interest rates, even though the Finance Minister Michael Noonan believes it contains major flaws.
It is understood the new legislation is being rushed through the Dail dispite Fine Gael’s objections because it has received full support from a number of opposition parties including Sinn Féin, Labour and a number of left-wing Independent TD’s.
However Mr Noonan has claimed the proposed bill has already caused problems with bank shares falling by 10% before its highly anticipated approval. Although Fianna Fáil finance spokesman Michael McGrath has strongly dismissed Mr Noonan’s comments accusing him of “scaremongering”.
Fine Gael’s disapproval of the new Bill comes after Mr Noonan claimed that it contained three major flaws. Mr Noonan also claimed the Central Bank governor and his predecessor had stated they did not wish to regulate interest rates.