Joe McHugh (Fine Gael)

I welcome the opportunity to speak in this debate. I also welcome a fellow Donegal man, the Minister of State, Deputy Gallagher. He will be aware of the challenges in providing housing in our county. However, we must debate an issue such as this on a national basis. With regard to stamp duty, the issue has been avoided in the course of the debate and in the Government's amendment.

For the past decade, construction has been this country's lifeblood, with significant revenue and other benefits accruing from the sector. The 90,000 houses which were built last year produced average fees worth €80,000 for solicitors and architects, as well as 13% profits for builders. Last year, the construction sector contributed a total of €6.4 billion to the economy. However, nobody in Government appears willing to ask questions about long-term sustainability. The blind belief persists that the good times will not end and the construction will remain sustainable. Fianna Fáil and Progressive Democrat politicians privately agree the industry is not sustainable, yet they have not introduced any measures to address the problem. Other industries which were traditionally sustainable, such as fishing and farming, are being ignored. No strategy has been put in place to divert resources into alternative industries.

Three weeks ago, Mr. John Bruton shared with this House his perspective as European ambassador to the United States. We can become blinded as politicians by our work at constituency level but he was a former Taoiseach and is now able to evaluate the country from the outside, which allows him to recognise the risk that our financial capital will be exported. People are investing in countries such as Bulgaria, Romania and Poland, or taking their money to Germany or the US. We should be debating the reasons for this exportation of our financial capital. We have to find solutions that incentivise the people who made money from the booming Celtic tiger to keep their capital in this country. We can do that by offering rewards for innovation or investments into public goods such as primary schools and sewerage schemes.

The threshold on stamp duty for first-time buyers must be increased on a pro rata basis because the situation varies across the country. Fine Gael's policy is to seek ways of abolishing stamp duty for first-time buyers.