Paul Murphy (Dublin South West, Solidarity) | Oireachtas source

I do not agree with the proposal in section 15 to extend the scheme, which was due to expire. I am against the extension for a number of reasons and have some questions to put to the Minister. I am against it because the fundamental effect of the so-called "help-to-buy" scheme is to transfer money into the pockets of developers having passed through the hands, briefly, of a select group of potential first-time buyers. The scheme was introduced originally on foot of significant lobbying by the CIF and it appears there was also significant lobbying in favour of its extension. The Minister might be able to tell us more about that. The scheme is being continued with no additional rules, albeit those were speculated about in the media.

Does the Minister have any evidence that the scheme works? In Britain, a similar scheme is being wound down on the back of studies that show there is massive dead weight in it. The people who are getting the money from the help-to-buy scheme would have been able to buy in any case and they are still buying the same kinds of houses without the scheme. It is an expenditure that provides no benefit whatsoever for the State. Ordinary workers on the average industrial wage cannot access the help-to-buy scheme in the first instance. I do not see the economic rationale for the scheme and the money would be far better spent directly by the State to build houses. I am interested to know whether the Government has carried out any study similar to the study carried out in Britain, which concluded that there was a very substantial dead weight in the scheme resulting in the decision to wind it down there.