John Gerard Hanafin (Fianna Fail)

While I welcome any Private Members' Bill, the Opposition always tells us to reflect on what is coming through, to be sure of what is there and to check and to double check. The one time we do it, they criticise us. It is only prudent that the Minister would wait. He has made it clear that he fully appreciates the intentions of the proposed Bill. He stated that it requires more rigorous examination and I accept his view.

The Bill proposed by Senator Coghlan seeks to ban the system of stage payments for certain types of newly constructed properties, namely newly constructed houses in housing estates. The Government considers that such a legislative approach may not provide the best method of achieving this goal and that all potential measures should be rigorously explored before opting for the legislative route. Draft provisions in the Housing (Miscellaneous Provisions) Act 2002 with a similar objective of abolishing staged payments were not proceeded with due to legal difficulties indicated by the Office of the Attorney General at that time. It is quite possible that some of the same legal difficulties may apply to this proposal. It is entirely appropriate that the Minister should be prudent and wait.

While there are currently no legislative provisions governing stage payments, a voluntary code of practice regulates these. The Irish Home Builders Association, under the auspices of the Construction Industry Federation, operates a code of practice on stage payments. While this code is voluntary, it demonstrates that such measures can be a very effective tool without recourse to legal measures. While it is often recognised that the practice of stage payments may have provided benefits to home buyers, for example through enabling them to enter into fixed price contracts at an early stage, concerns have also been expressed about the financial burden and risk which stage payments may carry for home buyers. The Government is concerned to ensure that house purchasers are not being disadvantaged by any practices that might make it more difficult to access a home. The Department is currently in discussions with the construction sector on this issue to identify the exact nature of any problems that may be experienced by the consumer, and to consider all potential solutions and to assess the effectiveness of the current code of practice. Therefore, it is right that the Government consider this Bill to be premature and that it is advisable to await the outcome of its exploration of all potential measures. If the outcome of this rigorous review identifies a need for legislative action, this Government will deliver.

The Government has a proud record in housing. Its housing policy is to enable every household to have available an affordable dwelling of good quality, suited to its needs, in a good environment and as far as possible, for the tenure of its choice. The unprecedented demand for housing, fuelled mainly by rapid economic growth and demographic changes, for which the Government can take great credit, has been the major driver of house price increases in recent years. The Government's strategy is to increase housing supply to meet demand and to improve affordability, particularly for first time buyers, and in this way to seek to bring moderation to house price increases. The Government will continue to focus on measures to maintain a high level of housing supply and the prospects for another good year in the housing sector are positive. In other words, supply is meeting demand.

There has been a record housing output. Measures implemented to boost supply include significant investment in infrastructure. In many cases that infrastructure was necessary because we had given planning permission but there was no benefit to the planning permission as given, as the infrastructure was not in place for the population that was to ensue. The measures pursued have improved planning capacity and promoted increased residential densities and these benefits are already obvious. The year 2003 was the ninth record year for house completions, with 68,819 units completed showing an increase in output of 19.3% on 2002.