Terry Leyden (Fianna Fail)

The Cathaoirleach is aware of what is happening in Limerick. Roscommon is an ordinary county. It is providing local authority houses of the best quality. It is also providing local authority sites, where possible, and other subsidised sites and housing. That is the way forward.

The biggest difficulty arises in the large cities of Dublin, Galway, Waterford, Limerick and Cork. The Minister should ensure that sites and land are made available by the State. The State should release all lands available, whether they are owned by the Army, the local authorities or the Office of Public Works. In Dublin, the local authorities should examine the possibility of acquiring lands that are not being used by developers. There is a legal provision whereby they can acquire those estates and lands to provide sites.

There is no easy solution to this issue. Tax exemptions is one means to tackle it. When I built my first house in 1971, the grant available was roughly 10% of the cost of the house. It was a big boost at the time. I was not over-enthusiastic about the removal of the local grants. I considered them an incentive to first-time house builders. However, they were removed and we must live with the consequences. It is probably better to provide tax concessions. In the budget next week the Minister will unveil a package which I believe will be of benefit to first-time buyers.

This issue is a serious challenge for the State at present. There are many issues facing the Government, including transport problems and so forth, and providing low cost housing to as many people as possible is another. If the Government can arrive at a Solomon-like solution, it will be of great benefit. I do not know the situation in the constituency in Donegal of the Minister of State, Deputy Gallagher, but, generally, the local authorities have been proactive but not proactive enough. There is also the influx of immigrants to many areas and they must be also provided with housing. Simply changing the tax code is a problem. However, the threshold for stamp duty for new house buyers should be raised to at least €400,000. That would be a step in the right direction.