Sheila Terry (Fine Gael)

I move recommendation No. 1:

In page 159, before section 102, to insert the following new section:

"98.—Any property whose value is less than €450,000 shall be exempt from stamp duty provided that the purchaser is a first-time buyer and he or she retains the property as his or her principal private residence for a period of not less than 5 years."."

I welcome the Minister to the House. I will speak on behalf of Senator John Paul Phelan who is unable to attend the debate. This proposal is part of a number of stamp duty reforms Fine Gael is proposing. It would help families with day-to-day issues with regard to the cost of living. It would mark the end of stamp duty as we know it and make it much easier for the many young people who want to get onto the property ladder, as well as for older people who want to trade down. We know it is becoming increasingly difficult for young people to get their feet on the ladder. More and more people in professions such as nursing, the Garda Síochána and teaching do not have salaries that are sufficient to get them on the property ladder. Stamp duty is one of the areas in dire need of reform.

I deeply regret the Government's attitude to reform in this area. It is preventing a large number of people from buying their first homes or from trading down. The latest interest rates from the European Central Bank are at a five-year high, which has highlighted the need for reform in this area. The interest rate hike highlights that the Government has failed to address the issues for many people.

The Minister had the opportunity in the budget to introduce reforms but he failed to take the opportunity. The mortgage interest relief measures in the budget were wiped out within 24 hours by an interest rate hike and, with the further increases, we now see how ineffectual his budget measures were. To reform stamp duty would have been far more beneficial for many people. It is a shame the Minister did not listen to the proposals put forward by Fine Gael, which I regret.

The comments made by Deputy Bruton, when he said the Minister's proposals were ridiculous, show the commitment of Fine Gael to reform stamp duty. The Minister must live with the consequences of his failure to do so and this is being highlighted on the doorsteps. Our proposals for making the stamp duty regime fairer are simple and measured and will make it easier for people to buy their first homes. It is difficult to listen to the Minister and members of the Government criticise our proposals when they have failed abysmally to address the problem. The Minister had the opportunity in the budget but failed to grasp it. We now see the result, with many people unable to provide themselves with their own homes.

The Minister's position in this area is contrary to that of those in the industry who have welcomed Fine Gael's proposals. For example, the chief executive of the Irish Auctioneers and Valuers Institute expressed the view that the market is in a position to take "substantial adjustments to stamp duty at this time" and that the Fine Gael plan has "huge benefits". The amendment would bring about a method by which people would be in a position to buy their first homes. I hope the Minister will consider it favourably.