Paul Bradford (Fine Gael)

I support the motion and concur with the points raised by Senator McHugh regarding the construction industry. Some 20 years ago, the then Taoiseach, Charles Haughey, stated the country was living beyond its means. A few months ago, the present Tánaiste claimed the Government was living beyond its needs and should return the money raised from stamp duty. Next Wednesday, we will learn the Government's opinion on the Tánaiste's philosophy. Will stamp duty be dramatically overhauled, as suggested by the Progressive Democrats, or will the Minister for Finance and the Fianna Fáil monopoly on Government power win the day? The Tánaiste has previously stated that the Progressive Democrats must be either radical or redundant but we will learn next Wednesday whether his party is relevant to this Government's economic policies. While I support some of the proposals on stamp duty made by the Progressive Democrats, I am unsure whether their suggestions will be enacted next week.

There is no point in that party's Members proclaiming they will deal with stamp duty if they are re-elected because they have been in Government for most of the past ten years and, if they are unable to introduce the necessary measures next Wednesday, they will never do so. Ample evidence is available to support radical reform of stamp duty, particularly in respect of first-time buyers, elderly people who may wish to trade down and disabled people with special housing needs. Reforms will require political will and courage from the Minister for Finance.

Rising house prices are creating almost impossible financial barriers to young people who want to get onto the property ladder. The construction industry may be booming but we have witnessed trends in the past few weeks which suggest a limited downward spiral. Much of the current uncertainty in the housing market arises from the controversy surrounding the Progressive Democrat Party's policies on stamp duty.

Fine Gael's motion seeks to help first-time buyers and those who wish to trade down to smaller properties. Surprisingly, the Government's amendment makes no reference to the motion but instead gives us a mini-lecture on tax reform. All parties in this House welcome the general reductions that have been made to taxation and we know from the experience of western Europe that low tax economies work best. However, while we can argue about how low our taxes should be, nobody can disagree that stamp duty is a heavy financial burden on first-time buyers or that reform is urgently needed. I urge the Minister for Finance to include a package of measures in next week's Budget Statement which will allow young people to get onto the property ladder and permit people to trade down without facing significant financial penalties. Stamp duty reform must form part of any such package. Next week's statement from the Minister will determine whether the Progressive Democrats are relevant or redundant.