Snippet data - viewing only, no editing possible


Label

Field name

Field value


Sitting_Date

10/13/2016 12:00:00 AM


Sitting_Forum


Snippet Ref No

SnippetRefNo

X00200

Selected Quill

SnippetType

1

Saved Quill

SnippetType_C4D


Selected Quill

SnippetType_1

1

Speaker Name

IndxSpeakerName

Cowen, Barry

Business Category

IndxMainHeadCat

Financial Resolutions 2017

Sub Category

IndxSubTopic

Financial Resolution No. 2: General (Resumed)

Topic

IndxQHeadTopic


See Also

SeeAlso


Part1

TitlePart1


Part2

TitlePart2


Part3

TitlePart3


Volume

VolumeNo

924

Book No

BookNo

3

Pdf Ref

PdfPageRef

941

Default Business Index

IndexViewCategoryDefault

Financial Resolutions 2017\Financial Resolution No. 2: General (Resumed)

3 Part Title Business Index

IndexViewCategoryTitle


Default Topic Index

IndexViewCategoryDefaultSpeaker

Financial Resolution No. 2: General (Resumed)

3 Part Topic Index

IndexViewCategoryTitleSpeaker


Motion Code

MotionCode


Motion Title

MotionTitle


Stage

MotionStage


Amendment No

MotionAmendmentNo


Bill Code

BillCode


Bill Title

BillTitle


Stage

BillStage


Section

BillSection


Statement Code

StatementCode


Statement Title

StatementTitle


Stage

StatementStage


Hour Indicator

HourIndicator

Not applicable

Procedural Instruction

Procedural_Instruction

No

Debate Adjourned

DebateAdjourned

No

Question Askee

QAskee


Question Asker

QAsker


Question Department

QDept


Question ID

QID


Question Reference

QRef


Question Speaker PID

QSpeakerPID


Question Speaker PID To

QSpeakerPIDTo


Questions Asked

QUESTIONSASKED


Speaker Type

SpeakerType

1

Speaker Name

Senator


Deputy


Minister


Witness


Chairman


ViceChairman


ActingChairmanD


ActingChairmanS


Speaker4Display

Speaker4Display

Deputy Barry Cowen

Speaker

Speaker

Deputy Barry Cowen

SpeakerPID

SpeakerPID

BarryCowen

SpeakerText

SpeakerText

Barry Cowen

OriginalUnidSnippet

OriginalUnidSnippet

68F3B7C9A5E634668025804B00523C29

LastModifiedSnippet

LastModifiedSnippet

02/05/2018 04:55:17 PM

TopicIndex1stCategoryValues

TopicIndex1stCategoryValues

Snippet Contents:

The backdrop to the budget is a housing crisis that is being felt in every part of the country. We face intertwined problems of endemic homelessness, spiralling rents, insufficient social housing and a stagnant private market. For an entire generation, the basic aspiration of home ownership is slipping away. The dream of having a place to call one's own around which one can build a vibrant family life and play an active role in the local community is disappearing. Instead of putting down roots, young people are paying up to landlords.
We need to give ordinary workers who are getting going in their lives, who are newly married or who are starting a family a real chance at owning their own homes. However, the first time buyers grant announced is not the solution they need. The Minister for Housing, Planning, Community and Local Government, Deputy Coveney, has conceded that the first time buyers grant is not a silver bullet, but he is firing the starting gun on a new property price race. Overall, the €20,000 grant will see more money chasing the same few homes. Builders will simply boost prices to get higher profits, which they need or which their banks demand. The cost of building a new home will remain fundamentally unaddressed. A young couple will find themselves using the grant just to try outbid other couples armed with the same amount looking at the same home.
This will have wider implications beyond just first time buyers. Homeowners looking to trade up are the Cinderella of the property market. These families, who have outgrown their old home or who have just escaped from negative equity, will also be hit by artificially spiked prices. Those trading up have been entirely neglected in the Central Bank rules and will now have to compete with first time buyers armed with an additional €20,000 to outbid them. The help to buy scheme or, rather, the help to sell scheme, is a demand-side solution to a supply-side problem
The extremes of the scheme are the sharp end of Fine Gael's two-tiered outlook on this country. The €600,000 limit imposed is completely off the wall. It is out of sync with the reality of ordinary first time buyers. The average overall cost of providing a three-bed semi-detached house of 1,214 sq. ft. in the greater Dublin area is €330,493, including VAT. The €600,000 limit is almost double this, which effectively turns the scheme into nothing more than a mansion grant. A new home worth €600,000 would require a €98,000 deposit and an income of at least €145,000. This is four times the average industrial wage. A couple earning this when starting out in life does not need €20,000 from the State, which is struggling to tackle a social housing waiting list of 130,000 homes. It means ordinary taxpayers are directly subsidising people earning four times the average wage to buy a home worth three times the national average price of a three-bed semi-detached house.
I do not agree with the scheme. I expressed my concerns to the Minister, Deputy Coveney, about the potential of the scheme a number of weeks ago. I asked him to carry out an impact assessment. This morning, the Minister for Education and Skills, Deputy Bruton, told us this was carried out. If it was carried out, and I doubt it very much, it will have serious implications for the Cabinet and it needs to be published immediately.
I beg members of the Government to examine the scheme and see the blatant unfairness of it at its extremes, by which I mean not capping the grant for houses at €400,000 and allowing the grant to €600,000. Those who can afford to buy such homes are not the squeezed middle. They are not an ordinary young couple, just married, looking to buy a semi-detached house and start a family. They are not young gardaí, young nurses or young teachers. They are not young professionals who have studied hard and worked hard while their parents paid a lot to put them through college. What the Government is financing and giving to those who can afford homes at this rate is a mansion grant. If they were considering buying a house three weeks ago for €580,000 they do not need an extra €20,000 now to pay €600,000 for it. This will undoubtedly turn a two tier recovery into a two tier property market. Those first time buyers a few years into their careers, struggling to save and pay rent will be not be served by further spiking prices on homes that will never be within their reach.
I want to make clear that Fianna Fáil believes in home ownership. We believe it is good for families and good for communities. Having something to pass onto future generations and a firm sense of place is a basic and fundamental human desire.