Joan Burton (Dublin West, Labour)

I thank the Minister for his detailed response to the Labour Party amendment. On the construction industry in general and its critical importance to the economy, I remind the Minister that in March construction firms employing more than five persons reduced their workforce on an annualised basis for the first time in four years. Figures for housing starts dropped significantly for the period September to March 2007, according to Davy Stockbrokers. The Construction Industry Federation is anticipating a sharp decline in housing output this year. The federation refers to housing completions in the range of 70,000 to 75,000, a considerable decrease.

It amuses me how difficult is the debate on one-off housing in rural constituencies. In Fingal and Dublin West I do not generally get involved in housing applications concerning fewer than 500 to 2,000 houses. In many of those developments the current phases are finishing and people are being let go. Fianna Fáil does not have a monopoly on the support of people working in the building trade. People who worked on my campaign were foremen who have been asked to go on two or three day weeks where previously they worked all the hours God sent. We are entering a changed phase in the construction industry. The construction industry has brought many of the problems upon itself in terms of greed and land prices.

The key problem in the market is affordability, which is determined with reference to interest rates. The European Central Bank indicates that by the end of this year we may see one or two more interest rate rises. This will cause the affordability issue to become sharper for families.

I saw a Green Party Member wander from one side of the Chamber to the other, without resting in the House to take part in the debate. It is unfortunate that they feel too scared, nervous or shy as Government backbenchers to contribute to the debate.

Regarding Deputy Mansergh's point, I recall the Green Party manifesto referring only to stamp duty relief targeting families trading down. Those in big houses in south county Dublin, where many Green Party members and voters live, were seized of the difficulties of families trading down and younger families buying the empty nest three and four bedroom houses. In a democratic sense it is a pity that the Green Party failed to participate in today's debate. The Labour Party amendment, about the work of the commission on taxation, is reasonable and considered. These issues ought to be debated in a forum where all factors were raised by me, the Tánaiste and the contributors from Fine Gael. These factors include how we help people who seek to buy an affordable home near work and family with access to child care and schools. How can the Dáil address that?

I refer to the comments of Deputies Finneran and Mansergh. The former found it unrealistic that wealthy first-time buyers would buy palatial homes for a couple of million euro and whose savings in stamp duty forgone would be higher than the price of an affordable home for a first-time purchaser. There are many trust fund children in wealthy districts of this and other major cities and areas throughout the country who will have an opportunity opened up to them by Fianna Fáil to buy or be assisted in the purchase of very expensive properties. These people will be exempted. That is fair enough if that is the Minister's policy objective, but the focus of this policy ought to be directed at people who need assistance in the housing market. We have our Paris Hiltons in this country who, given their trust funds and the family accumulation of wealth, do not have a problem buying and can afford to buy expensive properties. This measure from Fianna Fáil will provide them with an incredible bonus. Even the Progressive Democrats stated the first-time buyer relief should be restricted to houses of up to 1,350 sq. ft., the size of a modest three or four bedroom family home.

The Minister referred to equity, which is an important issue. When it comes to the construction industry, while Fianna Fáil has measures intended for the many, it always slips in a few little specials intended for the few. The lack of any restriction on who will be the beneficiaries of this measure is yet again a large bonus for well-off people who do not especially need the assistance of stamp duty relief or for whom stamp duty relief could be restricted to a total relief of €70,000, which would bring them up to a house purchase in the €500,000 category, which is perfectly reasonable for a first-time buyer.

I previously asked the Minister a question about capital gains tax. He ignored my question on tax avoidance in regard to stamp duty, specifically by sectors of the construction industry, by the entering into of licensing arrangements. In the previous Dáil the Minister undertook to reform that loophole which is being utilised only by certain elements in the construction industry to drive the housing market even wilder. It deserves reform for that reason alone. We congratulated the Minister on the late amendment he introduced to the Finance Act in this regard but he has not commenced the section. Every developer who is involved in stamp duty avoidance by licensing arrangements has had time since the budget and Finance Act debate to sort out ongoing situations where they are avoiding stamp duty. In parts of south County Dublin enormous transactions are taking place, for example, the purchase and sale of property in the Ballsbridge area. Almost all of that will be done through transfer of shares, thus avoiding stamp duty. The moneys involved are significant.

The Minister referred to the equity argument, which is a fundamental of the Labour Party position. Where is the equity in bringing in a measure which is seriously flawed when the Minister does not take the opportunity to close off the loopholes he and his officials know exist? I expect the Minister, as a solicitor, knows well that if one can find a way of avoiding stamping a document that will get one out of the stamp duty problem, that will be the approach taken. Instead of exchanging a property, however, if one exchanges shares, one qualifies for the share rate as opposed to the property rate. We have heard all that before. However, the Tánaiste has acknowledged that from the point of view of equity, it is difficult to tell someone this.

I know of people who bought first-time apartments in parts of Dublin West at whatever cost they could afford at the time, say €200,000. They did it right, got married and had a family. Such couples now live in one bedroom apartments in west Dublin with two children. Only one works as both cannot afford to so do because of the cost of child care and they are caught in a classic bind whereby they are now unable to trade up. What should they do? The local authority has told me they should go on the dole, hand back the keys to the house and abandon it.

The Minister for Defence, Deputy Willie O'Dea, may be somewhat surprised because in Limerick, the Government is moving correctly to try to rescue such situations. In west Dublin, however, I can produce several such families from my case list and I have spoken publicly about them. They have appeared in the media. The husband in one couple works for an international computer company and is on a fairly standard wage. They married, which was a big mistake, and have two little boys of three and six years of age. They live in a one bedroom affordable apartment that they are purchasing. Although I have been informed officially by the council that they have a housing need, they are unable to trade up.

Moreover, if they ever get to the position whereby they can trade up, they will have lost their first-time buyer status. As they would be buying at a cost of approximately €400,000 at most, we are only talking about €25,000 to €27,000. However, when one works for a multinational and only earns €30,000 to €35,000, one does not qualify for affordable housing. In Fingal, which has the highest number of affordable houses, the earning criteria at present for such housing is €41,000 to €45,000. The family in question cannot afford to have the wife working because she is obliged to mind the two children as child care costs in Dublin West are up to €300 per child per week. They are in a series of catch-22s which discriminate against married families and which were introduced by the Government.

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