Seanad debates

Wednesday, 26 May 2004

5:00 pm

Photo of James BannonJames Bannon (Fine Gael)

Those at the mercy of the private rental sector have suffered the effects of a system in chaos, which is still not regulated 100 years after the rights of tenants on the land were first established. It is a blight on the Government's record. Those trying to get a foot on the property ladder are finding it impossible because of stealth taxes imposed by the current Fianna Fáil led Government. Approximately 45% of the cost of a house now goes to the Government in tax revenue.

The Fine Gael Party has a radical plan to help 70,000 first-time buyers, those who have been crippled by the exorbitant taxes imposed by the Government, to make home ownership a reality. These plans will result in first-time buyers benefiting from the abolition of stamp duty on second hand homes up to the value of €400,000. This will mean that a first-time buyer purchasing a second hand house costing €350,000 would save approximately €14,625.

We have proposed an SSIA type scheme to help young people who are saving for a deposit for a new home. Under this scheme, first-time buyers will receive one euro for every three euro saved, provided these savings are used to purchase a house. No tax on interest will apply and the potential house purchaser will be required to show regular monthly savings for a minimum period of two years. The scheme will be applicable to both new and second hand houses. A frontloading of mortgage interest relief will help the buyer in the early years of mortgage repayments, giving first-time buyers help when they most need it.

As Senator McCarthy stated, since the Government parties took power, the price of a home has trebled from an average price of €97,000 in 1997 to more than €300,000 currently. This has resulted in home ownership becoming impossible for many young people who find getting a foot on the property ladder beyond their financial limits. The Government has consistently failed to tackle the housing crisis and has shamefully reaped a taxation windfall from the surge in new house prices. The Government netted more than €5 billion from taxation on new homes in 2003.

Fine Gael is committed to bridging the affordability gap, which is preventing people who have incomes from owning their own homes. Innovation, not taxation, will help to realise the dream of home ownership. A string of broken promises has followed the 2002 general election. The Government promised 10,000 affordable houses but has not delivered one.

The Taoiseach stated at the Fianna Fáil Ard-Fheis that developers who hoarded land would be dealt with through legislation and other means. These are empty words, given that Fianna Fáil cronyism has resisted all attempts to free up land. The construction industry has strong friends in the party and the undisputed riches amassed by "rezoners" and speculators have been added to by the party halving their capital gains tax liabilities while young people struggle to pay a mortgage. Land owning friends of Fianna Fáil continue to hoard land banks without fear of action by the Government.

I would like to highlight the alleged shameless remarks of the Minister of State regarding the disabled person's grant scheme, which is a worthy scheme.

Comments

No comments

Log in or join to post a public comment.