Mary Hanafin (Dún Laoghaire, Fianna Fail)

Unfortunately, I am not in a position to accept the amendment for three reasons. The first is that when the Department of Finance examined the matter, 2004 was found to be the peak year for house prices. People who purchased houses in 2003 were significantly better off than purchasers in the subsequent years. Those who bought houses in 2003 paid an average of €24,624 less than those who purchased in 2004. In order to target resources at those who suffered most from negative equity, the year 2004 was chosen.

The second reason is if the date is changed, those who purchased in the last half of 2002 will make the same argument. While this is a good measure in terms of supporting people, there will be demands to extend it six months prior to the cut-off date. The third reason is the loss that an extension to 2003 would cause to the Exchequer. The amendment as proposed would cost in the region of €16 million per annum, or a total cost of €64 million.

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