The Tánaiste says people paying high interest rates on their mortgages WILL get a deduction.

And she says banks who refuse to pass on lower rates to customers could face a levy or some other sort of sanction.

Joan Burton's comments follow those of Michael Noonan who yesterday raised the prospect of a levy on banks who won't lower their rates.

In the Dail this lunchtime the Tanaiste assured TDs that the variable interest rates WOULD be lowered: