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Select Committee on Finance, Public Expenditure and Reform, and Taoiseach: Finance Bill 2016: Committee Stage (9 Nov 2016)

Michael Noonan: The Deputy is including second-hand houses in his figures.

Select Committee on Finance, Public Expenditure and Reform, and Taoiseach: Finance Bill 2016: Committee Stage (9 Nov 2016)

Michael Noonan: That is not possible.

Select Committee on Finance, Public Expenditure and Reform, and Taoiseach: Finance Bill 2016: Committee Stage (9 Nov 2016)

Michael Noonan: If the Deputy's arguments are correct and there is such a money demand out there for new houses, why are new houses not being built-----

Select Committee on Finance, Public Expenditure and Reform, and Taoiseach: Finance Bill 2016: Committee Stage (9 Nov 2016)

Michael Noonan: -----in the private sector?

Select Committee on Finance, Public Expenditure and Reform, and Taoiseach: Finance Bill 2016: Committee Stage (9 Nov 2016)

Michael Noonan: The Deputy is misinterpreting the figures.

Select Committee on Finance, Public Expenditure and Reform, and Taoiseach: Finance Bill 2016: Committee Stage (9 Nov 2016)

Michael Noonan: I will provide Deputy Doherty with one figure before he finishes. The current trend of first-time buyers buying new houses, according to Revenue, is 150 a month.

Select Committee on Finance, Public Expenditure and Reform, and Taoiseach: Finance Bill 2016: Committee Stage (9 Nov 2016)

Michael Noonan: The current trend of first-time buyers buying new houses is 150 a month. There is plenty of headroom in this game within the money provided-----

Select Committee on Finance, Public Expenditure and Reform, and Taoiseach: Finance Bill 2016: Committee Stage (9 Nov 2016)

Michael Noonan: -----of €50 million. So the Deputy's figures of hundreds of millions are off the Richter scale.

Select Committee on Finance, Public Expenditure and Reform, and Taoiseach: Finance Bill 2016: Committee Stage (9 Nov 2016)

Michael Noonan: That is not the point. The Deputy is statistically incorrect.

Select Committee on Finance, Public Expenditure and Reform, and Taoiseach: Finance Bill 2016: Committee Stage (9 Nov 2016)

Michael Noonan: The scheme is designed for first-time buyers of new houses or new apartments. By definition, anybody in negative equity has a new house or apartment already. The Deputy is asking me to use the scheme for the purchasers of second homes. I do not think this is the scheme for that, although I appreciate the problem the Deputy has identified. We have had some discussions with the Central Bank...

Select Committee on Finance, Public Expenditure and Reform, and Taoiseach: Finance Bill 2016: Committee Stage (9 Nov 2016)

Michael Noonan: Yes.

Select Committee on Finance, Public Expenditure and Reform, and Taoiseach: Finance Bill 2016: Committee Stage (9 Nov 2016)

Michael Noonan: I will think about it.

Select Committee on Finance, Public Expenditure and Reform, and Taoiseach: Finance Bill 2016: Committee Stage (9 Nov 2016)

Michael Noonan: What is the Deputy's solution?

Select Committee on Finance, Public Expenditure and Reform, and Taoiseach: Finance Bill 2016: Committee Stage (9 Nov 2016)

Michael Noonan: That is being done. There is a big social housing programme being rolled out.

Select Committee on Finance, Public Expenditure and Reform, and Taoiseach: Finance Bill 2016: Committee Stage (9 Nov 2016)

Michael Noonan: There must be a private housing programme as well. The bit we are doing here is on private housing for first-time buyers. A whole programme has been rolled out by the Minister, Deputy Coveney, relating to social housing. This is about affordable housing for young couples.

Select Committee on Finance, Public Expenditure and Reform, and Taoiseach: Finance Bill 2016: Committee Stage (9 Nov 2016)

Michael Noonan: The Cherrywood example is not a vulture fund. Developers in Cherrywood have the biggest construction developing company in the United States of America. They are not vulture fund people at all.

Select Committee on Finance, Public Expenditure and Reform, and Taoiseach: Finance Bill 2016: Committee Stage (9 Nov 2016)

Michael Noonan: They develop vast tracts of land and sublet sections of it to smaller builders. They have a good working model. Of course, they work for a profit but they are not ripping people off or anything like that. They will contribute to housing supply in south Dublin.

Select Committee on Finance, Public Expenditure and Reform, and Taoiseach: Finance Bill 2016: Committee Stage (9 Nov 2016)

Michael Noonan: At the risk of causing the Deputy further concern, the biggest risk I see to house prices is 9,000 or 10,000 very well-paid people from the City of London relocating to Dublin with money to buy second-hand homes. That is the space the Deputy should look at.

Select Committee on Finance, Public Expenditure and Reform, and Taoiseach: Finance Bill 2016: Committee Stage (9 Nov 2016)

Michael Noonan: The information I have from the Revenue Commissioners is that mortgage sanctions to first-time buyers are running at 150 per month, amounting to 1,800 and not 18,000.

Select Committee on Finance, Public Expenditure and Reform, and Taoiseach: Finance Bill 2016: Committee Stage (9 Nov 2016)

Michael Noonan: It is for new builds. I will read the note in case there was misunderstanding. The current trend of first-time buyers buying new houses is 150 per month.

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