Sheila Terry (Fine Gael)

I thank the Minister for his response. This is obviously not my area of expertise but I will attempt to formulate an answer for him. The uncertainty in the market has not been created in recent weeks by the Fine Gael proposals because it began earlier when the Progressive Democrats announced their proposals.

Speculation on reductions in house prices following the implementation of policy by the party or parties that might be in Government after the general election is bound to cause some uncertainty. People will wait to see whether they will benefit. I agree with the Minister that it is a question of supply meeting demand. We are reaching this point and it will have its own stabilising effect on the cost of property. When supply did not meet demand, prices increased and made matters impossible for first-time buyers. There was an increase in house prices every month but when supply meets demand, as I believe will occur, it will stabilise them. It is at this point that we will require stamp duty reform and the abolition of stamp duty will lower house prices for first-time buyers. This has not occurred in recent years because the increases negated any benefits that accrued from the reduction in stamp duty.

As supply meets demand, we should realise the benefits of a reduction in stamp duty. We are reaching this point and need to address how to get young people into the property market. My proposal is a prudent way of doing so. The Minister may be critical of Fine Gael's policy but he should note that the interest reliefs he introduced in the budget were wiped out within 24 hours by increases levied by the financial institutions. Perhaps he did not think about this very carefully either. When he claims his measures are to benefit those who need relief most, I agree this is necessary.

We should all try to benefit those who most need our help but I wish the Minister would apply this criterion in the area of pensions. If he is consistent in his views, he should be consistent in implementing policy across the board. Our taxation system in the pensions area certainly is not benefiting those who need help most. The tax relief on pension contributions is benefiting those on high incomes and the system does not benefit those on the lower rate of tax in this regard. There should be greater equity in the system of tax reliefs for pension contributions so everybody will benefit. I am not opposed to offering benefits to those on high incomes but we should be realistic and realise those on low incomes do not benefit. Consistency is therefore required. I take on board the Minister's commitment to apply a taxation policy that will benefit those most in need. I must stand over what I have said and the Fine Gael amendment stands. The Minister will obviously not accept it today, but I hope he will consider it further.

I agree with Senator Mansergh that older people or those who have had properties for ten to 30 years, or more, have enjoyed enormous increases in their value. These same people are parents and, as we know, many of them must help out their sons and daughters to buy their first homes. The sons and daughters whose parents are in a position to help are the lucky ones. While parents are realising enormous profits from their properties, many are trading down so they can disperse some of this profit to their children to enable them to get their feet on the ladder. However, many are not in a position to do this. We have an unequal society and there is great inequity in the property market.