John Dardis (Progressive Democrats)

It was Senator Bannon who mentioned manners earlier.

The first-time buyer's grant dates back to 1977 when the economy was completely different, with low house prices, crippling interest rates and tax rates as high as 60%. It was introduced at a time when only 18,000 new private houses were being built each year because we did not need them when so many were forced to take the boats. Last year, private housing output amounted to 47,000 units. The economy in the housing market has changed fundamentally and this must be reflected. The onus must now be on the construction industry, consumers and the Government to ensure sensible house prices and affordability.

Over time the real impact of the removal of the grant will be seen in the moderation of prices for starter homes. Builders must take account of the removal of the grant and will have to set their prices accordingly, taking cognisance of the market, as they always do. It is what they are doing in the case of the grant.