Sean Barrett (Independent) | Oireachtas source

I move amendment No. 4:

In page 10, line 7, to delete "the" and substitute "a distortion-free".

My amendments refer to the price in the "open market". I suppose the background to this one, which is offered in the spirit of suggestion to the Minister if it is of use to him in the finance Bill or elsewhere, and on which I will not seek a vote, is to ask the Minister what is the open market value of a house at present.

My view is we should let the prices fall. It would improve the competitiveness of the Irish economy. However, for other purposes which I understand and appreciate, such as not having to bail out the banks again, we have allowed ghost estates, NAMA's intervention in the property market and forbearance which has other good side effects, but it means that the taxation of an individual under the Bill is based on a price that is being artificially kept high and, in general, is not related to the ability to pay of the person in the house. It would be better, for economic reasons, if the price fell. It would also mean that the liability under this tax would fall.

I am trying to get a handle on what is the open market price. I believe it is seriously distorted upwards by the policy measures to which I referred. I would ask the Minister to consider whether an adjustment downwards in people's liability to the tax is justified by the current state of the property market.