Mick Barry (Cork North Central, Solidarity) | Oireachtas source

I will be brief because we had a lengthy debate on this on Committee Stage. I will repeat some of the key reasons we would support the production of a report examining this issue. We believe the scheme is flawed in a number of respects. First, we have issues with the supply of housing at present. The scheme will increase demand. It is quite obvious what happens in a situation in which there is increased demand and a more or less steady supply. It will push up prices. There is evidence of that already in Cork and I believe the same applies elsewhere, especially in the cities.

The beneficiary of that is the developer who pockets an increased profit, and not a small profit. The banks are beneficiaries as well. While I accept that some first-time buyers will benefit from the scheme, in 40% of cases it is individuals, couples or households who would be buying in any case even if the scheme did not exist. The reverse is the case as well. There are many people on low incomes who do not have significant savings who will not be able to benefit from the scheme. Perhaps those most in need do not benefit and those who are in lesser need do, but the big beneficiaries are the developers.

I would like if the scheme were put to one side now. I do not have the option of bringing a motion on that to the House, so I am supporting the amendment to the effect that we will receive an urgent report on this. This scheme costs a fair few bob. It will be €43 million for next year. Up to the end of June this year the cumulative cost of the scheme to the taxpayer over the years has been €289 million. Those resources would be far more usefully employed if we invested directly in social and affordable housing through the local authorities. I support the amendment.

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