Michael Kitt (Fianna Fail)

I welcome the opportunity to contribute to this welcome debate.

There has been a great deal of comment on stamp duty from different political parties and individuals in recent months in the context of the forthcoming budget on 6 December. Fianna Fáil has made much progress in respect of stamp duty. In 2001, there was a zero rate of stamp duty on houses with a value of up to €190,500. In the budget of December 2005, this rate was extended to properties with a value of up to €317,500. Those are positive and welcome developments and there will be other opportunities — whether in the budget or in next year's Finance Bill — to introduce more changes in respect of stamp duty.

There has been somewhat of a dip in the cost of houses in recent weeks. However, there remains a shortage of properties. People have borrowed large amounts to purchase homes and they are obviously keen to discover the position vis-À-vis stamp duty. In preparing to contribute to the debate, I came across a number of figures relating to those who either are or are not first-time buyers. For example, on a €600,000 property the stamp duty might be €36,000 for a first-time buyer and it could be €45,000 if the person is not a first-time buyer. Those are large amounts to be obliged to pay in tax, and we must acknowledge that stamp duty is a tax.

I become most annoyed when people begin discussing the average cost of houses. Some of these averages are nonsense. Certain properties in Dublin change hands for a few million euro, while many houses in rural areas are reasonable and affordable. As the Minister of State and the Leas-Chathaoirleach are aware, one of the advantages of living in the west is that houses are not as expensive as elsewhere.

Senators Ross, McDowell and others referred to a certain type of abuse that exists in the property market. There is a great deal of hype about certain properties. One matter about which I am upset and in respect of which the Government should take action is the concept of buying off the plans and selling on. A number of people approached me about this matter in recent weeks. Some of them were concerned that because they were buying houses which, effectively, were second-hand properties, they might be obliged to pay stamp duty. However, I explained the situation and informed them that they could have bought two properties and still remained under the €317,500 limit. There is a great deal of questionable behaviour in respect of this matter and it should be investigated.

I sympathise with Senator John Paul Phelan in respect of people trading down. In my opinion, there should be greater mobility. I do not know, however, whether the latter would be the effect of trading down. This is not rocket science. The late Eamon de Valera referred to this matter in his own way when he spoke about very large families in the west.