Ruairi Quinn (Dublin South East, Labour)

The purpose of the resolution is to alter the rate of stamp duty on commercial property. I will confine my remarks to this issue.

Deputy Boyd Barrett and others asked how the calculation of €64 million had been arrived at. I understand it was based on properties being sold with a stamp duty rate of 6% and an estimate of what the demand might be based on various representations made and an analysis received by the Department of Finance. It is an analysis, it is not a scientific figure. They have taken a median view on it. It may or may not occur but we now propose to charge 2% stamp duty on a volume of commercial property transactions for which, if the rate was 6%, the amount of €64 million would be the revenue foregone, dropping from 6% to 2%.

Why are we doing it? - because there is an overhang of commercial property that is preventing movement in the sector. Empty buildings are counterproductive in an array of different manners. They are a cost on whoever owns them. In many cases, I suspect - I do not know for definite, but it is a reasonable assumption that Deputy Fleming has made - that NAMA is directly or indirectly at the end of the ownership line of these properties. It is in everybody's interest, and in particular in the taxpayer's interest, that these properties are moved on. There are some indications to suggest that there is an interest among people who would be in a position to purchase these properties. There would be a VAT consequence in terms of the turnaround of the property or its upgrading or improvement. So there will be some degree of employment generation.

We have had NAMA for several years and there is a great deal of static, non-movement in the property sector. The Minister for Finance has convinced the Cabinet that by dropping the stamp duty rate from 6% to 2% we may get some movement. That would be positive for all concerned, including the taxpayers who are ultimately the owners of NAMA.

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