John O'Donoghue (Kerry South, Fianna Fail)

I very much welcome the Government's decision to introduce the new flat rates of 1% and 2% for stamp duty, as it is a progressive move. Unfortunately, over the years successive Governments began to recognise stamp duty as a revenue gathering exercise but historically it was never meant to be so; it was originally introduced in order to keep a record of the housing stock and sale and purchase of same. As the years rolled on it became a tax-collection exercise. The fact that there were different percentages for different valuations illustrated beyond any doubt that what I am saying was the intention.

As the property market expanded, the return from this tax, as it became, increased. As the volatility of the market surged, the amount of tax yielded from stamp duty increased in parallel. It gave a false impression and heralded false dawns, and the fact that it was meant in the first analysis to be a register of properties as opposed to a revenue gathering exercise was forgotten, and to be truthful, it became a convenient and subtle way - if I might use the term - to collect funds from citizens. Naturally, there was a tendency by all Governments not to upset the apple cart and it was never upset to any great extent until today.

The new provision will create a great deal of certainty in how to proceed in future on valuations and allow us to understand, perhaps for the first time in many decades, precisely how we stand regarding the value of property in this country. It will also provide us with a valuation base for property.

I am not given to the overestimation of officials in the Department of Finance, no more than I am given to underestimating the proficiency of the Department, nor would I for one moment accuse them of subterfuge because I know them to be very honest and decent civil servants. However, I am slightly concerned about the statement to the effect that today's provision helps us to form a valuation base. I hope that in future this will not be a valuation base or springboard to a property tax.

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