Pearse Doherty (Donegal South West, Sinn Fein)

With regard to section 62 and the different rates of stamp duty, the reduction as regards lower valued properties is to be welcomed, since people on low incomes were being penalised. I know the Government is getting rid of the exemption from stamp duty for properties under €127,000, so people who buy a very small house worth, say, €80,000 to €100,000 or whatever will now be subject to stamp duty. However, the Minister of State referred to the fact that properties valued at more than €1 million will be subject to the 2% rate as distinct from the existing 9% rate. There are still trophy houses on the market in the region of €5 million. Based on what the Minister of State has said, the reduction we are introducing in this Finance Bill is in the region of 7%, which would mean a total saving for somebody buying such a trophy house of, say, €350,000. How can this be reconciled with charging stamp duty on modest housing worth in the region of €120,000? There is a major saving to be made for those buying at the very high end of the market. The intention here is to stimulate the property market, which is not moving currently, but we have had situations before where all types of reliefs were introduced in Finance Bills and so called "section 23 reliefs" to stimulate the market.

We know where that got us. We need to be careful and to ensure those who have the ability to pay do so. This includes anyone buying at the high end of the market. Even if the direct saving from 9% to 2% does not amount to €350,000, and I understood it was tiered, the public could not countenance that type of saving as a result of the Finance Bill given that the State is trying to make savings. I would appreciate it if the Minister of State could subsequently reply.

See this speech in context