Catherine Connolly (Galway West, Independent)
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8. To ask the Minister for Finance further to Parliamentary Question No. 37 of 28 April 2022, the status of the review of the help-to-buy scheme; the person or body carrying out the review; and if he will make a statement on the matter. [30711/22]

Catherine Connolly (Galway West, Independent)
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I have a very specific question about the help-to-buy scheme. I have been following up on this since the review was announced. What is the status of the review? Which body or person is carrying it out? When will it be completed?

Seán Fleming (Laois-Offaly, Fianna Fail)
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I thank the Deputy for raising this issue. As she has said, she has consistently raised this matter with the Minister for Finance. The help-to-buy incentive is a scheme to assist first-time purchasers with the deposit they need to buy or build a new home or apartment. The Deputy knows this but I am saying it for those listening. There are many different schemes so I wanted to put on record which one we are talking about. The incentive gives a refund of income tax and deposit interest retention tax paid to the State over the previous four years, subject to limits outlined in the legislation. The Taxes Consolidation Act 1997 outlines the definitions and conditions that apply to the scheme. As the Deputy will be aware, as part of budget 2022, the Minister for Finance announced that a formal review of the scheme will take place this year. The contract for the review has been awarded to Mazars following a competitive tender process. That is new information that we did not have the last time we spoke. This selection from a number of bidders was made in accordance with the relevant public sector procurement guidelines for procurements costing in the range of €25,000 to €144,000. The most economically advantageous tender was selected, which was from Mazars. I am informed that work on the review is under way and in keeping with the terms of reference provided in the request for tenders. The terms of reference are as follows:

To examine all aspects of the Help-to-Buy scheme [...]

In doing so, the review should explore the cost effectiveness of the scheme to-date, including the issue of deadweight. It should also examine the impact of the scheme on house prices since inception.

The findings should present an assessment on a national basis while highlighting any regional aspects.

Having regard to the Government’s Housing for All strategy, and in particular to other initiatives included in Housing for All that have the same broad policy objectives as currently apply for the scheme, to examine whether there is a continued role for Help-to-Buy and, if so, to present options on how such role might best be fulfilled in the most efficient and cost-effective manner in the medium to long term [...]

As part of the overall context, the review should draw on experience internationally and offer views in this regard as appropriate.

The study should be completed by c.o.b. Friday, 24 June 2022.

Since we last spoke, Mazars has been appointed. There is a deadline. As soon as the report is provided, the Minister will be able to consider it with a view to publication in due course. That is the timeline.

Catherine Connolly (Galway West, Independent)
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When precisely was Mazars appointed? Will the report be produced by the closing date of 24 June? It seems an extraordinarily tight timeline. It has already taken this long since the review was announced in October 2021. I welcome the positive news but I want clarification on that point. I also want to know the cost of it. The range under the procurement guidelines is €25,000 to €144,000. The background is very important. This was introduced in the budget in 2016 for 2017, as the Minister of State well knows. It was predicted to cost €40 million per year. Between January to November 2021 alone, it had cost €167 million, more than four times that figure. I understand it has now cost more than €500 million. We do not know if it represents value for money. We have had various reports and comments. In October 2021, Professor Kieran McQuinn of the ESRI said the scheme was adding to demand pressures. We know from the Parliamentary Budget Office that 41% of applicants had no need for deposit assistance.

Seán Fleming (Laois-Offaly, Fianna Fail)
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I will clarify because it may be a little bit confusing. The Deputy may understand it but not everyone watching will. The selection from a number of bidders was in accordance with the relevant public procurement guidelines for procurements costing in the range of €25,000 to €144,000. It was expected that the tender would fall within that range. It is not necessarily the price. We have not given the price. I do not have the price here today. Mazars was only recently appointed. The tender process closed on 28 April. I think I saw in my notes that Mazars was appointed on or around 28 April but I ask that the Deputy not to hold me to that because I am speaking from my recollection on that particular issue. I take on board her view. Historically, the Government and the taxpayer have always supported a form of home ownership over the decades. It is part of the Irish psyche. This is another element that reinforces that.

Catherine Connolly (Galway West, Independent)
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I would appreciate clarification on when specifically Mazars was appointed. Will it be able to comply with the deadline of 24 June, which is tomorrow week? On the actual cost, I understand the range but would like to know the specific cost for the duration of the contract. Will it be published? With regard to the Minister of State's comment on the Irish psyche and home ownership, I do not believe this is a way to help people to own homes.

I believe that it is an inflationary procedure which adds to the prices. We know that over 40% of buyers did not need help with a deposit for houses priced at up to €600,000. That is not a way to increase affordability or to help people gain ownership. I hold a completely different view on the scheme, which I will not go into in the few seconds remaining. It is already on the record. I am fully in favour of public housing and ownership of housing, but not in the manner in which it is being done currently. It is being done piecemeal, like a jigsaw, which is adding to the cost all the time. The review of the scheme is supposed to be a fundamental one. How much is it costing? Will it be completed by Friday, 24 June, and published immediately?

Seán Fleming (Laois-Offaly, Fianna Fail)
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I thank the Deputy for the additional questions. I do not have some of the information to hand. I will ask officials to forward to the Deputy as much information as possible on her questions in the coming days. I am not sure whether information on the cost of the review can be provided. I do not know the answer to that.

There is a broader issue. I am generally in favour of the scheme, whereas the Deputy is not. However, that is a broader issue and does not concern the specifics of the scheme. I benefited from getting income tax relief on the interest on my mortgage. It is gone now. I think it was part of the Irish psyche to get some help when buying a house. That is gone. This is a different scheme. Some people, including me, think it is a good idea, while others have reservations about it. However, that is a larger debate for another day.