Ciarán Lynch (Cork South Central, Labour)

I thank the Minister of State for his response. I wish to pick up on two or three specific areas, with the key point being the purchase of new or old builds. An important point is that the ceiling of €285,000 is the determining factor, so it does not matter if the mortgage is taken on a new or old build. That is the ceiling. In welcoming this proposal, we should realise that it is an impetus which enables people to buy a home in a particular locality, be it new or old. As there is a ceiling, there is no difference if the house is old or new. The Minister of State's argument does not stand up with regard to the ceiling. Because the scheme is specific to new builds, there is an impression that we are witnessing a bail-out.

Another concern is highlighted by the Minister of State's reference to people who can only get an 80% loan to value mortgage from a bank. Two things are happening at the moment. House prices, although still overly expensive, are falling and it is becoming a buyer's market; and if a bank refuses a loan because it does not believe a person can make the repayments, the council is stepping in, with the implication of some private lending. An exposure to risk is being created.

Given that the Minister has set a ceiling, would it not be more appropriate in the roll-out of the scheme that the ceiling be the determining factor? It should not matter if the scheme allows people to buy new or old builds.

See this speech in context