Joan Burton (Dublin West, Labour)

Last year information given out before the budget stated first-time buyers paid up to €70 million in stamp duty, of which €66 million was on properties costing less than €635,000. The Bill's provisions grant absolute relief to all first-time buyers, regardless of the size of house purchased. Last year, the Progressive Democrats put forward proposals to abolish stamp duty for first-time buyers but restricting it to houses of 1,300 sq. ft. or less, a sizeable three or four-bedroom house. The Fianna Fáil proposal contains no restriction on the size of property. It is, therefore, of particular advantage, as are most Fianna Fáil proposals on housing, to the well-off. It will benefit wealthy first-time buyers and, mainly, those with wealthy parents who can contribute up to €500,000 in the purchase of a first-time home without involving themselves in capital acquisitions tax difficulties. There are several taxes that apply when wealthy parents transfer properties to children. This measure is tilted at the better-off while the number of ordinary first-time buyers who will benefit will be limited.

I have received several representations from home-buyers who have lost out on the refund deadline of 31 March 2007. A couple — a teacher and a garda who bought before the deadline — informed me it was unfair that those who bought between the budget and the deadline will receive nothing from the Bill's provisions. They pointed out they bought in the same market conditions and political climate but that the cliff-like all or nothing impact of the deadline has created a chasm of complete winners on one side and losers on the other.

The Minister for Finance, Deputy Cowen, has attempted to justify his U-turn on stamp duty as being appropriate. On the Monday before the general election was called, I recall the Minister on "Questions and Answers", stamping the table saying he was the Minister for Finance and that stamp duty would not be changed. The Minister made the false representation to many young couples that they could be sure the moves made in the budget would be the market conditions that would apply. People made decisions in good faith on the word of the Minister for Finance to purchase homes. Solicitors, based on the Minister's claims no change would be made to the stamp duty regime, would have advised clients to proceed with sales. Many house purchasers who did so before the 31 March deadline have been caught out.

Tomorrow, I will offer the Minister a simple amendment. He could talk about sales concluded in the quarter ending 31 March. That at least would restore some fairness to people who believed, in good faith, what Deputy Cowen had to say, as Minister for Finance. People relied on his reputation as Minister for Finance and on what he said in that role, and they and their advisers then acted to their detriment because they believed him. I should expect the Minister to have some sense of obligation to those who acted in that fashion. It was not an unreasonable thing for them to do, following what he had indicated when he spoke as the Minister for Finance on this issue. All Members of the House understand the politics of the situation, and that he was overruled by the Taoiseach. The two of them then came to a political agreement. Part of Deputy Cowen's reward subsequently was to become Tánaiste——

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