Mary White (Fianna Fail)

I welcome Deputy Cowen to the Seanad and I congratulate him on his reappointment as Minister for Finance. His appointment as Tánaiste is a great honour for him and his family

I welcome this Bill. For too long the ability to get on the first rung of the property ladder has been nearly impossible for all but the lucky few. The Bill will not only alleviate the burden for first time buyers but will also provide them with more options when it comes to buying their first homes. As the Minister stated, home ownership is one of the primary aspirations of Irish people, it strengthens communities and improves the environment. It provides parents with a valuable asset to pass on to their children. It is only natural this Government would want to encourage such positive developments and has therefore decided to implement this stamp duty reform.

At present new houses and apartments with a floor space of less than 125 sq. m. are exempt from stamp duty and are therefore more attractive options for first time buyers, however many of these new houses are found in sprawling developments that lack the necessary amenities such as schools, shops, public transport and child care facilities. Under the current legislation new houses are more attractive to first time buyers because they do not attract stamp duty. Many first time buyers are forced to move away from their families when they buy in new developments. The Government wants to increase the likelihood for first time buyers to buy closer to their own localities.

The unique aspect of the Bill sees the abolition of stamp duty for first time buyers extended to second-hand properties. Therefore, second-hand homes have become equally attractive as new houses to first time buyers. This will allow first time buyers who grew up in well established communities to buy a home nearby without incurring stamp duty. We must also remember that this measure will also benefit those seeking to sell their homes because the market will now include a greater proportion of first time buyers. If older people are looking to downsize, when their children leave home, they can sell their homes in a wider market and in the process free up family homes in established areas.

The Government is committed to supporting home owners. During the past ten years in office it has trebled the housing supply and greatly improved the availability of social and affordable housing. This development in stamp duty reform is yet another demonstration of the Government's commitment to home owners throughout the country. Our promise to help home owners will be reinforced by implementation of the national development plan and the moneys to it. This much needed reform of stamp duty will not only open up the housing market to first time buyers, it will also present house sellers with greater options, further encourage property developers to fully evolve their product and end the uncertainty that has clouded the property market in recent months. I am pleased to accept this Bill