Joan Burton (Dublin West, Labour)

I thank my colleague, Deputy Gilmore, for raising this important issue.

A critical question for the Labour Party is affordability of housing for first-time buyers and people moving to larger properties as their families grow. There is a growing issue, particularly on the fringes of Dublin, as people buy small, affordable homes or apartments through such councils as Fingal, Dublin city and Dún Laoghaire-Rathdown. Currently, if they have a family, they are not given another chance to get a family-sized home. They are restricted regarding affordable housing to one purchase only. When family size increases as people marry, enter relationships or have children, a one or two-bedroom affordable apartment, which was appropriate for a single person or couple, becomes completely unsuitable. The Government offers no assistance to such people, and Labour wants to see that property trap removed.

The pre-budget outlook published by the Minister for Finance, Deputy Cowen, shows an estimated €70 million will be paid by first-time buyers in 2006. Those are first-time buyers of secondhand homes in expensive locations, with houses costing more than €317,000. The position of such first-time buyers and people trading up to buy a modest family home costing over €317,000 is in stark contrast to the avoidance mechanisms that have been tolerated by the Government, and which the Minister for Finance defended again today where developers invest in multi-million euro land and property deals. Those who buy apartments and houses in the developments pay the stamp duty, but the developer pays nothing on mega-million euro land deals. The Fianna Fáil-Progressive Democrats Government has left two loopholes, the first being a licence to build so that no land changes hands and no stamp duty arises, as the Minister told us today. The second is that, instead of transferring land, one transfers shares in a company, which attracts a stamp duty of only 1%, whereas the transfer of valuable development land would normally attract the top rate of 9%.

Perhaps Members are aware of the deal regarding the Irish Glass Bottle Company site, which was recently sold for over €400 million. That was done by share transfer, attracting a stamp duty rate of just 1%. The developers made a cool €30 million through avoiding stamp duty, and the Minister for Finance defended that today. They saved almost half of what first-time buyers are paying in stamp duty this year. It is set out in the Labour document that we want such blatant injustice regarding the tax and property system reversed in favour of first-time buyers and people who want a modest family home.

I wish to say a word on mortgages. I am not sure if many Members are aware that, in the last 18 months, their cost has risen by 50%, so the average mortgage repayment in the Dublin area has gone from €1,453 to €2,167. Over a calendar year, one must find €24,000 to pay for the average mortgage on a small property before anything else. In addition, one must eat and provide for other necessities. It is not possible to live on air in one's apartment. It is outrageous that the acquisition of a family home has been put beyond people's grasp by this Government.

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