Michael Noonan (Limerick City, Fine Gael) | Oireachtas source

My position has not changed since the policy document on the construction industry was published. There were 72 proposals in that document and this was one of them. It was criticised by some people who had not even read the proposal and did not understand it. They had no idea what I had in mind. However, there is nothing new about that. I heard a debate between two so-called experts on the radio last week. In respect of proposals for solving the housing crisis, one fellow wanted to put a €1,000 tax on every empty bedroom, to incentivise people to occupy them. These are crazy people who want to go out and knock on doors and find out what people are doing. The other guy wanted to apply capital gains tax to the sale of the primary home, saying this is the type of incentive the markets need. These are daft proposals. Not alone were those proposals daft, but as the interviewer was cheering them along the proposals got even dafter.

We are evaluating this. I know the risks, but I am also aware of the upside. In the United Kingdom it did not work in London because it overcooked a market that was already very hot, but outside London it added 30% to the supply of family homes. It was badly needed in the regional areas outside of London. It is not a demand-side initiative, but a supply-side one. One should think of it in that context. All we are talking about anyway is the State covering 10% or 15% of a mortgage for a limited period, to get somebody over the hump and into a house. Then they might get promoted at work after the five years or whatever is the time period we decide. It would be for first-time buyers and there would be a capital cap on it. We will return to the issue again. If I proceed, it will be announced in the Finance Bill.

See this speech in context