Paul Coghlan (Fine Gael)

I welcome the Minister of State at the Department of the Environment, Heritage and Local Government, Deputy Noel Ahern, and look forward to what he has to say on this subject and how he will apologise for the shortfall that exists in this most basic provision. There is an obvious truth in the Labour Party motion. There is no doubt about the continuing rapid rise in the price of new houses and the failure to take effective measures to control the price of building land. While I am not sure how it could be done effectively, something should be done in that area. The motion also expresses concern about those on modest incomes who are effectively excluded from the housing market or, at a minimum, find it increasingly difficult to get on the first rung of the housing ladder. There is a need, as the motion suggests, for a radical solution from the Government on the home ownership crisis. I look forward to hearing what the Minister of State has to say on that aspect.

The right to a home is a basic right. In regard to affordable and social housing, I support Senator Brennan's call for a full audit of local authority lands. However, I suggest that all lands in State control should be included in such an audit. A debate took place here recently, in which I did not have the opportunity to participate, on hospital lands. The pros and cons of the rush to sell off all those vast acres that surround some hospitals and other institutions were aired. The State, especially the Department of the Environment, Heritage and Local Government, should ensure that many acres of those lands be made available to local authorities because there are huge housing waiting lists in every local authority area. A full inventory should be done as soon as possible to facilitate what is necessary to meet the evident demand.

The number of homeless people on the streets of Dublin is appalling. What agency is grappling with this problem, tending to these poor, unfortunate people who are begging on the streets at night? The State is now very well off and surely hostels could be provided to allow these people a place to stay at night where they would get a meal and shelter.

I strongly support Senator Bannon's assertion that the Government should urgently examine the removal of stamp duty on houses at the lower end of the market. This could cover houses valued at up to €400,000, perhaps, and if the Government could make a start on this it would be welcome.

Senator Ross expressed his sympathy with young people trying to enter the housing market and I would like to hear the Minister of State address the subject. Our sympathy could be demonstrated in a practical way by removing the ban on stage payments. I do not understand why the Minister of State has not acted on this since he expressed his intention to do so when he spoke on the topic in the Seanad in May 2004. There is no uniformity on this issue across the country; I do not believe it exists at all in Dublin, and that is why it should be abolished. It seems to apply mainly in Cork and some other counties.

Why should young people, or anyone for that matter, have to pay up to 90% of the price of a new house before it is completed? They could be out 90% of the cost over the course of a year, they cannot get a proper mortgage and are subject to bridging finance — they are being screwed, let us be honest. Banks and other institutions are prepared to make the money available. People engaging in this type of purchase run a frightful risk of ruin should the builder go bankrupt, although that is unlikely to happen nowadays. In the last year I have heard of cases where such buyers believe they are about to move in to the house only for snags to arise which render it impossible. It is an appalling mess to which the Minister of State can no longer turn a blind eye. It is an unnecessary burden on first-time buyers that forces them to begin mortgage repayments months before occupying their home. This system is of no benefit to the buyer and is designed solely to accommodate the builder or developer. The economy is going well, from which builders are the first to benefit, and no builder needs this practice in the counties that it exists.

In today's Ireland there should be no need for a buyer to foot the costs of building materials for a new house. This is an outdated method of payment and provides no protection to the consumer. The Minister of State surely believes that this is an unacceptable practice and I would like to hear his opinion on it. I do not want to go into the Peelo & Partners report but it showed that consumers are paying an extra €175 million because of this practice. This figure has probably increased because that report dated from 2004. I look forward to hearing the Minister of State address this sore point.