Martin Mansergh (Fianna Fail)

The Government has a proud housing record with a record supply of 52,000 houses in the past year. I support the social and affordable housing programme, even those parts that are not particularly popular with builders and I hope the Government will adhere to it. The first-time buyer's grant was of value and importance to some people but in many cases it was absorbed into the builder's price. The Labour Party spokesman, Deputy Eamon Gilmore, fully understands the limitations of the value of the first-time buyer's grant.

The real problem is that young people are unable to get into the market. A massive inter-generational redistribution of wealth to older people who own houses is taking place and that is regrettable. I was appalled by the recent commment of an estate agent that the property market is growing ever onwards and upwards. That is the psychology of the South Sea Bubble. I do not believe it but it is pernicious.

The Government must, in a budgetary context, look at the imbalance that has been created by removing the first-time buyer's grant. I do not like when professional people who have more money than they know what to do with put their money into the housing market, crowding it and making it impossible for younger people to buy into. It is not the Government's job to sustain the housing market at an unrealistic price level. Apart from the social and affordable housing which deals with one segment of the population, we need to look at measures to dampen the market. Having been a member of the tax strategy group for the last five years, I know this is not an easy thing to get right but that should be the priority rather than the health of the building industry.