James Reilly (Dublin North, Fine Gael)

The economy is frozen and there is no activity in the market because everybody is afraid. They are afraid for their jobs and savings. There is no certainty anywhere. We need to put some real initiatives in place. We have already asked for a reduction in VAT and have suggested a moratorium on PRSI for new employees to encourage employers to take them on.

I suggest a six month moratorium on stamp duty, reducing it to 1% for that period so people can see they have an opportunity to enter the market and get value. I would also like to see a moratorium — this is a personal view — for a further six months on properties abroad so that capital gains tax will be reduced from 22% to 5% to encourage people to repatriate their money and invest in Irish business. None of these proposals is designed to interfere with the market, but rather to stimulate some activity, the consequence of which will be an immediate gain to the Exchequer of 13.5% VAT on all new houses sold, as well as VAT on the fees charged by solicitors, auctioneers and surveyors. I would remind the House that 1% of something is better than 6% of nothing. Last month, stamp duty dropped by 72% compared to January 2008.

We have asked the Government to freeze local authority rates and charges to give businesses a chance. This is not a time to put a strain on businesses. We need to restore a semblance of normality, even if it is only at half the value and half the volume.

The Taoiseach's plan is a poor start. It is a blunt instrument that is hurting many people unfairly and, further, it ignores totally the areas of reform, improved efficiency and initiatives to stimulate the economy.

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