Pearse Doherty (Donegal, Sinn Fein) | Oireachtas source

By the time that the review is done, not one property will have been built that was not already intended to be built. There is at least a two-year lead-in period comprising planning permission, site development, construction and sale. No property will have come on board as a result of this scheme by the time that the review is undertaken.

I hope that I am wrong, but the independent report will show that the scheme has led to house price increases. We do not need an independent report. Politicians need something so that they can say that there is a review and so on. There is already enough evidence to suggest that it is pushing up house prices. Deputy Michael McGrath's party and its spokesperson have been on the record as saying that the scheme is doing that, yet it will allow this scheme to become law. There will be the fig leaf of a review in ten months' time and the assertion that the scheme must end if it is pushing up house prices, but there is no chance that the Government will end it in ten months' time when the evidence comes through. Instead, there will be talk of legitimate expectations, people saving and entering into contracts, etc. I will table a parliamentary question on when was the last time that the Government introduced a time-limited tax relief that was cut early. The trend has always been to extend, extend, extend.

If the report shows that the scheme is pushing up house prices, what would be the legal implications of turning it off, given that the expectations created by the Finance Bill will lead to people purchasing within these dates, only for it then to be denied to them? The appropriate action would be to stop this now. Carry out the analysis that is required. Have proper, meaningful and thorough consultation with the Central Bank. Discuss the issue with the banks' heads from the developer and mortgage points of view. Let us wait to hear what the Central Bank will do to ease lending restrictions. Let the Department conduct a proper economic analysis. If the evidence stacks up, introduce such a measure in next year's Finance Bill, but doing so at this time is madness. It is back-of-the-envelope stuff. This is a hunch. In fairness, this is the Government trying to do something about housing, but it is doing it at the wrong end of the spectrum. The scheme should be cancelled. A report after the fact is no good. We are clear on this. At this late stage, I appeal to Fianna Fáil to stand up and be counted. It has the power to stop this scheme being introduced and increased property prices inflicting damage on many future house buyers.

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