Michael Brennan (Fianna Fail)

I wish to share my time with Senator Morrissey. In welcoming the Minister of State, Deputy Noel Ahern, to the House, I support the amendment. The Government's first priority is to get the country back to a sustainable rate of spending in order to avoid a long-term crisis. To do this, tough measures have had to be taken in different areas. The Government's decision on the first-time buyer's grant was taken to ensure a sustainable rate of spending and prevent a long-term crisis in public spending.

As many speakers have said, the first-time buyer's grant was introduced in 1977. We all remember the state the construction industry was in at the time and how few houses were being built. It was an initiative to support the less well off in our society to build a house of less than 1,346 sq. ft. An average of 10,000 grants per year have been given in the past five years. The grant was introduced at a time when only 17,000 to 18,000 houses were being built in the private sector. The scheme was initiated to encourage the building of more new houses as demand had exceeded supply. Last year there were 47,000 private housing units so the need to encourage new housing development has greatly changed.

As the Minister, Deputy Noel Ahern, has rightly said, the Government should now focus on responding to the needs of low income households and those with special housing needs through a broad range of targeted initiatives. I ask the Minister for Finance to give consideration to these people who would have qualified for housing grants. He should consider giving tax credits amounting to €10,000 over a five year period to people who would have qualified for grants in the past. Some 27% to 34% of the cost of building those houses now goes back to the Government in taxes.

Fianna Fáil has always helped those less well off in our society in areas such as housing and social welfare. I ask the Minister for Finance to continue to do so in the forthcoming budget. A balance needs to be struck in Government housing policy in the budget. It must aim to target scarce financial resources and to build social and affordable housing. The Government, local authorities and the building industry need to come together to tackle this problem and work for the common good in both the public and private sectors. I welcome the public private partnership that has taken place in Fingal. Local authorities have ample scope to meet the housing needs through the serviced sites initiative. I am delighted the Minister has seen fit to increase the funding available for that next year.