Paul McGrath (Westmeath, Fine Gael)

The rate of inflation in the housing market in provincial areas in 2002 averaged 11.5%, 13% in 2003 and 11% in 2004 and 2005, and the corresponding figures in Dublin were much higher. Is the Minister aware this has added about 50% to the cost of a house for somebody entering the housing market, all within a period of four years? This is horrendous for people who are trying to get into the housing market.

Is the Minister aware that of the 81,000 units to which he referred, only about 4,000 are local authority houses and a further 2,300 are affordable houses? How does he expect that with housing inflation running as it is, people will be able to find a house for themselves?

The Minister referred to the tax take from housing. Earlier in the year he conceded that the tax take on new houses was running at 35%. A house costing €300,000 will give the Government a tax take in the region of €105,000. This gives the Minister an annual tax take in excess of €10 billion from family homes, which is approximately 25% of the Minister's total tax take and is extra to the tax take from infrastructure and commercial building. The tax take from the housing sector and the general building sector is remarkably high and this was conceded by the Minister in his reply. What percentage of the total tax take is this? It must be 25% or more. If even a fraction of this amount is taken out of the tax take, will there not be knock-on consequences for the services which need to be provided? What steps will the Minister take to avoid a sudden fall in the housing market?

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