FG plans cash boost for first-time home buyers

FIRST-TIME buyers saving for a home would receive €1 from the Government for every €3 they put aside under a deposit scheme proposed by Fine Gael.

The measure, part of a three point plan to help first time buyers, was announced by environment spokesman Bernard Allen at the party's Ard Fheis at the weekend.

The plan also calls for all interest relief on mortgages to be given in the first seven years and proposes the abolition of stamp duty on second hand homes for first-time buyers.

Other notable policy initiatives revealed by Fine Gael at the weekend include a proposal by justice spokesman Jim O'Keeffe to put electronic tags on juvenile offenders and a promise by party leader Enda Kenny to introduce a dedicated minister for small business.

Announcing the first-time buyers plan, Mr Allen said it would help young people save for a deposit on a home and assist them in paying off their mortgage during the first difficult years.

Mr Allen claimed that the proposed deposit savings scheme would be similar to the Government's SSIA scheme, and would mean that first time buyers who save €20,000 would get an additional €7,000 from the Government tax free.

Mr Allen said it was also critical to cut stamp duty for young home buyers who, he argued, were often crippled by huge taxes on housing.

"Stamp duty is, far too often, the straw that breaks the camel's back and represents one step too far for those wishing to buy a home but simply cannot afford it. Fine Gael will relegate that phenomenon to the history books," he said.

Fine Gael's proposal to change mortgage relief also intends to alleviate pressure on new home owners during the first few years when they typically face the most financial difficulties.

"At the moment, everyone can avail of mortgage interest relief, even when many years have elapsed and their repayments have fallen significantly. Fine Gael believes mortgage interest relief should be given when it is most needed at the start of the mortgage.

"That is why we call for all the interest relief due to be received over the course of a mortgage to be given in the first seven years, thus offering real help to young homeowners when they need it, not when they grow older and are more financially secure," he said.

Accusing the Government of failing to introduce a functioning recycling infrastructure, Mr Allen also proposed an increase in the plastic bag levy.

"I believe that the money generated should be ring-fenced and ploughed into a modern 21st Century recycling infrastructure," he told party members.