Shane Ross (Independent)

Everybody in the House welcomes measures that will assist first-time house buyers. Were there to be a vote on this Bill, I would support it as I believe it attempts to do this. Whether or not it will work is a different matter. I question this for two reasons, one of which the Minister dwelt on in his Second Stage speech.

We have been told for some time, particularly before the election, that one of the reasons for uncertainty in the market is the extraordinary debate surrounding stamp duty and Fianna Fáil's slightly ambivalent attitude to this particular subject. However, in order to remove this uncertainty Fianna Fáil committed itself to the abolition of stamp duty for first-time buyers. The evidence so far is that it has done nothing of the sort. Whereas it may result in lower costs for those purchasing houses for the first time, which in itself is doubtful, it has not removed uncertainty in the housing market. Having listened to this morning's report, to which Senator Hanafin referred, it is obvious that uncertainty in the housing market is worse than ever. It has not been remedied by the abolition of the uncertainty regarding stamp duty, rather it has continued owing to the fact that interest rates have been rising and as a result of economic uncertainty, which is a far bigger issue.

I also question whether money saved by first-time buyers through the abolition of stamp duty will end up in the hands of developers. While people may believe they are paying less because they are not paying stamp duty, they may find the cost involved is the same because house prices will increase by the amount of stamp duty that would have applied. That is a theoretical argument as is the one that stamp duty has penalised people in any way, though this cannot be unproven. I hope the Minister will be able to remedy this and that this legislation will help people rather than promise to help them.

I would like to raise another issue with which I am sure the Minister is familiar. Many of my constituents, and I am sure other Members' constituents, have made very pained representations regarding the selected date of 31 March 2007 which appears to be arbitrary. Backdating the abolition of stamp duty to that date provides great benefit to those who have purchased since then but penalises those who purchased prior to that date, particularly those who purchased after budget day based on the Government's firm stand that it would not alter the stamp duty rules. Many people who believed there would be no change to the stamp duty rules purchased homes after that date. Others believed, as public opinion moved and the Government changed its stance, that the rules would be changed. Those who purchased prior to 31 March 2007 have been unfairly discriminated against and I plead with the Minister to backdate this concession to budget day, when the initial impression was given that there would be no change to the stamp duty rules, despite the assurances of the Progressive Democrats.