Brendan Ryan (Labour)

There is eternal optimism in Government circles that house price inflation will decline but there is no market evidence that it will do so. The sum of €365,000 will diminish relative to the value of a house within five years. This is a way to reduce the number of people who will have access to the services. The Minister of State will deny any such intent. There is no logical reason to separate south Dublin and north Wicklow, one of the most desirable areas in the country. It is illogical to suggest that because one lives in Enniskerry, County Wicklow, rather than Dalkey, County Dublin, the house price to be considered will vary by a factor of 25%. This measure was inserted in a hurry because people realised that house prices are higher in Dublin. In fact, Dublin is the cause of house price inflation in circles reaching as far as Carlow. What is the logic in choosing Dublin? There may be logic for banding house prices depending on the region. There is no simple solution because the only way one can establish the price of a house is through the market, the amount a willing seller is prepared to accept from a willing buyer where both are acting freely. The current solution is attractive as a bureaucratic solution but makes no logical sense.