Pat Casey (Fianna Fail) | Oireachtas source

I take the opportunity to welcome the Minister, Deputy McGrath, to the House. It is his first time visiting us as finance Minister.I thank him for the leadership role he has provided in the party over the past while.

The fiscal landscape of budget 2024 marks a significant chapter in the annals of the financial system, defining a century-long narrative shaped by successive Governments and finance Ministers throughout an independent national story. In the promising early years of our independence, many people, doubtless both foreign and domestic, questioned the capacity of a young Irish State to forge and administer a thriving economy. Faced with global challenges that were stymying newly independent governments worldwide, Ireland emerged not only unscratched but as one of the most prosperous modern nations in the past century. When a Fianna Fáil Minister last presented a budget, it corresponded to probably the most formidable budgetary challenge in our nation's history. Our party bore a substantial political cost for the stringent measures imperative to salvaging our economy and society. Brian Lenihan, however, in an act of patriotism and transcending party lines, rose to the occasion, prioritising the needs of the people over the interests of his political party, a testament that endures through time.

The Minister, Deputy McGrath, has continued in the footsteps taken by Brian Lenihan more than a decade ago, albeit in a markedly transformed economic landscape. It is a moment of pride for the Minister, his family and all of us in Fianna Fáil as we once again ensure every Irish individual in need will benefit from our economic prosperity, while safeguarding the well-being of our people through challenging times. In budget 2024, overseen by the Minister, Fianna Fáil prioritised the needs of all Irish citizens over political interests, as is necessary in the management of a modern Irish economy, in contrast with the Opposition's focus on rhetoric and narrow electoral concerns. The evolving and enlarged economic system in a modern, outward-looking, flexible, highly educated and thriving society is one of the most successful in the OECD and has for many decades been spearheaded by Fianna Fáil finance Ministers. The Minister in budget 2024 upholds this legacy of patriotic and prudent financial management by providing sustainability through additional supports for those facing the challenges of the global cost-of-living crisis.

While acknowledging these accomplishments, it is crucial to express areas of concern that, in my view, should have received attention in budget 2024. In adherence with the tradition adopted by Fianna Fáil, I am able to critique the omission of certain measures from the budget. The Minister is aware of my genuine commitment to this matter and we have collaborated closely to advocate for the inclusion of specific measures I believe would significantly benefit working families aspiring to own their own home, a paramount objective for most families. The issue I raise relates to help-to-buy and, specifically, the loan-to-value ratio of 70%. My issue is not with the 70% but with the exclusion of the first-home equity scheme from the calculation of that 70%. Home ownership is vital for families and society, providing stability, a sense of belonging and financial security. It fosters community engagement, enhances children's well-being and contributes to neighbourhood resilience. Moreover, home ownership stimulates economic growth and strengthens the social fabric, playing a crucial role in the overall health and prosperity of individuals and communities.

Later I will identify families who are equally, if not more, deserving of the help-to-buy support but are excluded. Changing the calculation process also has the potential to mitigate the reported deadweight, given these families will not form part of that category. They have maximised their mortgage and savings, yet still require equity from the first-home scheme. The first home scheme has empowered families to realise home ownership. Without change to the help-to-buy, this dream will be unattainable, and I would like to see the integration of the first home equity into the calculation of the 70% loan-to-value ratio, although I acknowledge that the Minister made changes to that to allow local authority affordable housing schemes to qualify for it.

It is hard to put into words exactly what I am trying to explain here, so I will leave behind copies of the document I have to hand. My first example compares somebody buying the same house for €445,000 as someone else on the same salary who is not in a position to get the same mortgage.One gets a mortgage at 79% and one gets a mortgage at 68%. They both require help from the first home scheme, one to the tune of €30,00 and one to the tune of €80,000. They both have a debt of 86%. However, the person who only got the 68% loan-to-value ratio is excluded from the help-to-buy scheme. That is one example. Therefore, that family’s debt is increased to 93%.

Another example is a house at €350,000, where the income was €57,000. They got a mortgage of €230,000, which, again, is 66%. They required €67,000 from the first home scheme, or 19%, bringing the total loan-to-value ratio to 85%. However, if you exclude the help-to-buy scheme, it increases that to 94%.

The next example is a couple I met who thought the aspiration of owning their own home had passed them by, but the introduction of the first home scheme made it possible. However, they are not in a position to get a 70% loan-to-value ratio on their house because of their age. They could only get a 64% loan-to-value ratio. They required €54,000 from the first home scheme, which was 17%, giving a total loan-to-debt ratio of 81%, but without the help-to-buy scheme, it is 90%.

A young girl could not get a mortgage because of the industry she was in. She was working in make-up in the film industry. She could not secure the mortgage, so she got a permanent job. Her salary was reduced and she now can only get a mortgage of 69% - 1% short. She required €54,000 from the help-to-buy scheme, which is 18%, giving a total loan-to-debt ratio of 83%, or 91% without the help-to-buy scheme.

My final example is a young woman trying to buy a house at €285,000. She could get a mortgage of €195,000, which was 68%. She required €50,000 from the first home scheme – 17% - giving a total debt ratio of 85%, but without the help-to-buy scheme, that is 94%.

I have gone through these with the Minister and he is aware of them. I believe it is the right thing to do. This is a cohort of people who need the help-to-buy scheme more than anyone else. They have maximised their mortgage and their savings. Without the help of the first home scheme, they would not be a position to aspire to owning their own home. We are making it much more difficult for those families to aspire to owning to their own home. I will hopefully be trying to address this again.