Mr Peter Fitzpatrick, TD for Louth, said the bill will result in long term difficulties and long term solutions are needed for mortgage holders.
Mr Fitzpatrick said: "I know the challenges people face paying high mortgages and of course I fully support any sustainable measures that would result in a reduction in monthly mortgage repayments for those on variable interest rate mortgages. The problem is that I don't believe the Fianna Fáil bill will do that.
"In my view competition in the mortgage sector is the only practical solution, which will work now and into the future. This will, by its very nature, reduce interest rates, as new providers entering the market will want their share of the market.
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"I fully support any measures that would result in cheaper mortgage repayments, regardless of what side of the house they come from, but we must not fall into the trap of introducing ineffective legislation, with a short term outlook."
Green Party Deputy Leader and TD for Dublin Rathdown Catherine Martin, said: "There is no doubt that banks are deliberately overcharging homeowners unlucky enough to be stuck with variable rate mortgages. They are doing this because they can. There is also no doubt that something must be done by the Dáil to compel the banks to act.
"I commend the efforts of Deputy Michael McGrath who has been a constant voice in this area, but I have to take issue with the current Bill before the House. In our view, it is drafted with such infirmities that it will not pass the test of constitutionality, and it will inevitably be struck down.
"Banks know this, the civil service know this, and the Government know this. We must avoid giving them all a 'told you so' moment. I'm appalled by the behaviour of the banks, but this Bill won't help the cause."
(CD/MH)
