Ulick Burke (Fine Gael)

I welcome the Minister. However, I regret that he has been so negative and is so obviously avoiding tackling the very real problem of house prices. I commend Senator Coghlan on bringing this Bill before the House, but it is regrettable that the Minister has avoided the real issue of the need to take immediate action. It is unbelievable that so many Senators on the other side of the House do not see what the system of stage payments means to people. It means that young couples must pay on average an additional €7,000 per annum for their house without getting access to it. I cannot understand how they can say it will not make any difference to wait six months more before deciding what to do and that nothing can be done because of the increasing red tape or because it would, perhaps, cause an increase in price or a decline in supply. If ever I heard warped logic uttered in this House, I have heard it tonight.

It is regrettable that the first thing this Government did in its first days in office was to abolish the new house grant and interest subsidies for young buyers. Now it will not act because it might increase the price of houses and cause a decline in supply. I remind the Minister that the Department, through the local authority, demands that in turnkey projects stage payments are not allowed and that if there is an agreed price for a house, it is up to the builder to turn it out within the timescale agreed on contract. Why is it then that the Department will allow this to continue for individuals who buy houses directly from a builder in the circumstances referred to in Senator Coghlan's Bill? It is unbelievable that there are double standards once more. Has anybody within the Department investigated the contributory factor of constantly increasing house prices in increasing inflation? The increase in house prices is obviously a contributory factor in increasing inflation. That is going on daily. To say the responsibility for this rests more with the Consumers Association of Ireland than with the Minister is a clear indication that he is afraid to tackle the reality that is blatantly obvious to young people buying houses. The Minister claims he is prepared to listen and to take action. While he is delaying, rip-off Ireland is flourishing and he is not showing a willingness to tackle the problem. All the vested interests involved are unfortunately playing the same game. The Minister and his Department are not allowing it to happen through the local authorities. One instance that I remember quite clearly is the turnkey project, where the Minister allowed the builder to sell the houses directly to the local authority on his behalf so that they can be provided as social or affordable housing. That does not apply in this case, so why does he allow it to continue for individual house buyers?

The Minister claimed that €7,000 per annum is insignificant to individuals. Everyone has said that and that is what the report stated. The Minister cannot contradict that because there are several examples. For instance, the Law Society gave 15 examples of the situation where the average additional payments on the interest on loans was €7,000 and where the occupants had not yet even got access to their house. That is a major contributory factor to inflation in house prices. If we allow that to continue, it will show that there are double standards within the Department. On the Order of Business this morning, everyone was of the opinion that the Minister was going to accept this Bill while making necessary adjustments or changes to it. The word was out that it was the departmental officials that were holding firm on this issue. The Minister has responsibility for housing under this Government and if he allows the permanent government to dictate to him, then he is not listening. It was reiterated time and again yesterday after the Minister's own parliamentary party meeting that the Government was now going to listen. Yet the Minister has come here today and is not listening. He is prepared to allow this to continue and should ask himself serious questions on his determination to support young people who are trying to provide a home of their own. It does not matter if it is in Cork, Galway or wherever, the practice is widespread throughout the country. I am not too sure if it is here in Dublin, but if it is not, I am sure there is some other facility that can be used by builders to compensate them, although not as blatantly as this.

I plead with the Minister to introduce some mechanism whereby this practice can be eliminated from the whole process. If that is done even as an interim measure, many people can avail of it, including young couples who are in dire straits. If €175 million has to be paid in interest per annum by young people, it is time the Minister took notice. He cannot easily fob off the notion that we can wait six months or a year. That is displaying arrogance to the young people who are trying to make ends meet to buy a house for themselves. I support Senator Coghlan's Bill. If the Minister is not accepting this Bill, I ask him to indicate that he will put in place, in the interim, some other mechanism whereby the market will be rid of this particular scam. This cannot be allowed to continue.