Brian Cowen (Laois-Offaly, Fianna Fail)

The question of equity in the treatment of housing, of which the stamp duty code is a part, must be seen in the context of the overall tax treatment of property owners. The OECD has reported that Ireland "has some of the most generous tax provisions for owner-occupied housing". Ireland is the only country to allow tax relief on rent, mortgage interest payments, capital gains and capital acquisitions, while not applying an annual property tax. Furthermore, stamp duty helps fund public services such as health and education, while keeping the direct tax burden low. This facilitates continued economic success which benefits all taxpayers and their families and has allowed us to reduce taxes on work and enterprise with clear benefits for the economy as a whole.

It is a long-standing tradition that the Minister for Finance does not comment on tax measures in the run-up to the budget. However, the programme for Government commitments in this regard have been met. The Finance (No. 2) Act 2007 introduced a full exemption from stamp duty for first-time buyers in accordance with the commitments made in the programme for Government. This change brought about a positive impact upon the ability of first-time buyers to purchase their first home. This has widened the choice available to first-time buyers and removed an obstacle to their establishing their own homes in the neighbourhoods and communities in which they grew up. These matters are monitored on a continual basis.

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