Pearse Doherty (Donegal, Sinn Fein) | Oireachtas source

That is the current scenario or the historic position. The point I make is the other portion of the 1,600 getting mortgage approvals who are buying second-hand homes. We can accept that. The Minister has introduced a €20,000 tax incentive, which is an enticement to purchase new builds. It is what the measure is aimed at, thus increasing supply at that end. The point I make is that if a significant cohort follow that direction, or if all of them did so, it would cost the State €385 million per year. I am not suggesting they will all buy new builds but there is now an incentive of €20,000 for that.

The figures referred to by the Minister indicate the value is in the second property market. We all know that and I mentioned earlier that although I do not know the date of the figures stated by the Minister, one can see with mortgage approvals and drawdowns that from March this year, there has been a significant increase in those numbers. The value may no longer be in the second home market but rather the new property market because of this incentive. How did the Department arrive at the figure of €40 million or €50 million, given that if the number of first-time buyers getting mortgage approval bought new houses in one month, it would cost €32 million if they were valued at €400,000 each?