Pat Rabbitte (Dublin South West, Labour)

I do not disagree with the history provided by Deputy O'Donoghue on stamp duty and how it came to play such a significant role in the property transactions which took place here over the past 15 years in particular. It is not quite true to say nobody upset the apple cart as I remember a former colleague of the Minister for Health and Children famously announcing that his party had decided to abolish stamp duty. The quote is indelibly framed in my mind as he said we "did not need the money". How things have changed, as we need it now.

The only question which arises is how fair is this provision. Is this preparatory to the introduction of a property tax? Is this an interim measure or is this likely to be a permanent feature of the landscape? I ask the Minister to address that issue.

The current exemptions, which it is proposed to abolish, are not entirely to be sneezed at. The reliefs and exemptions which applied for property below a certain valuation and, in the case of first-time buyers, to houses below a certain square footage are not inconsequential. I ask the Minister to address that issue.

On the issue of DIRT, I am not sure I understand the difference between the two DIRT rates. What is a long-term DIRT account as distinct from an ordinary DIRT account? Are the former savings accounts which mature after three or five years and to which the higher DIRT rate applies? In the circumstances in which we find ourselves we cannot very much disagree with the measure.

The subsequent resolutions in respect of tackling the increase in the rate of life assurance exit tax and reducing the thresholds for capital acquisitions tax are not designed to yield a great deal of income and the Labour Party does not take particular exception to them.

The debate should focus on stamp duty. Is it envisaged that the proposed changes will be permanent? I ask the Minister to respond on the exclusion of current exemptions and indicate how the changes will knit into the finance Bill in terms of the property tax about which the Government gave a commitment to Ajai when he was here. Will Mr. Chopra be on the telephone to find out how this tax is to be implemented if we depart from it in any way?

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