Pearse Doherty (Donegal, Sinn Fein) | Oireachtas source

Watching the Government on this issue is like watching a drowning man telling everybody that he is fine as the water comes up around his face. This week we had the International Monetary Fund telling us that, in the light of increasing houses prices, the planned review of the recently introduced help-to-buy scheme which might add to demand pressures was welcome. We have seen other reports which state it is a contributory factor, but we need to look at what is happening. The problem is that all of the arguments put forward by the Government have fallen flat on their face and it has been done again today. The primary reason articulated during the introduction of this measure was it would help people to raise a deposit in the light of Central Bank rules. First-time buyers must have a deposit of 10%, which means a loan-to-value ratio of 90%. Anybody with a loan-to-value ratio less than this had more to put towards a deposit. The released figures indicate that 72% of claims - not applications - were from individuals who had no problem whatsoever in reaching the deposit level. Let us put a figure on it, if it relates to motivation. A sum of €17 million has been paid out, meaning that approximately €13 million has been paid to people who did not have a problem because of Central Bank rules in the first place. Some of the claims came from people who could put 30% upfront in cash. The Minister is putting the country's money into their pockets when they do not need it.

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