Terence Flanagan (Dublin North East, Fine Gael)

I thank the Minister of State for his reply. The Fine Gael Party is concerned about any type of intervention in the housing market. I accept the Minister of State believes this measure will not result in any intervention in the market.

Our main concern is why this measure applies only to new and not second-hand houses. This, to us, appears to be a bail-out of the property developers. There should be no intervention in the market at a time when it is declining and prices are falling. It is anticipated that prices will drop by a further 20% to 25% next year. We want to ensure homeowners do not end up with negative equity.

Also, the scheme sets a lower ceiling limit of €285,000 in respect of the purchase of a home. We are concerned this too will result in intervention in the market. Perhaps the Minister of State will explain why the scheme is specifically tailored to new homes.

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