Richard Boyd Barrett (Dún Laoghaire, People Before Profit Alliance) | Oireachtas source

Well done to Deputy Wallace. I completely support the Bill and its objectives. I also agree with him wholeheartedly that speculation and land hoarding is a major, if not the main, contributory factor to the current housing crisis and the excessive cost of housing. The point made by Deputy Ó Broin is also very important. It is a point that is not highlighted enough, although we have done so periodically. The tax breaks available are extraordinary. When we ask the Minister for Finance to cost them and tell us how much is forgone under those tax loopholes on capital gains and rental income allowed for, he cannot even tell us, which is shocking. Given the increase in property prices since those tax breaks were put in place, it has to be in the tens of billions of euro, certainly in the billions. People have no incentive to build.

My next question is for all of the witnesses, given that I agree with every word they have said and the purpose of the Bill. Do most of the people who bought up this land have any interest in building anything at present? Mr. Reynolds has said, which is very worrying and alarming when we consider the state we are in, that we are now at the top of the cycle. Perhaps he will elaborate on this point. If we are at the top of the cycle and output is pathetically low because it is more profitable for people to sit on land or flip it, we will be in deep trouble in the event that output reduces. I support the 25% punitive rate but if people do not want to build now and this rate is imposed on them, they will not build either. Is it not most likely that they will just get out of the market? That would not be a bad thing if they had to sell it back to the local authorities under section 12. Is it very likely they will state they have made their money and decide to walk and sell back the land? Even then the local authorities would have to buy it back at 60% or 40% of current value and that would still mean the State picking up a significant Bill and the people involved walking away with large profits. Will the witnesses tease this out?