Stamp duty: FF puts builders first

FINANCE Minister Brian Cowen thinks Fine Gael policy on stamp duty is not well thought out and that it would result in many job losses in the future.

His rationale is that because FG plans a phased implementation of stamp duty reform over a three-year period, potential home-buyers will hold off until it is fully phased in. Mr Cowen is concerned that developers may then decide not to build more houses as long as the demand is not there.

This shows that profiteering by developers is far higher on the Fianna Fáil agenda than the ability of honest, hardworking people to afford their own homes. It brings to light also FF’s ignorance of the importance of building a community, and not just an estate of houses.

FG’s plan to abolish stamp duty for first-time buyers on properties worth up €450,000 will mean that those who would love to be able to buy a second-hand home in the area they grew up in, or in an area where they don’t have to commute long distances to work, will now have a far greater chance of doing so. The importance of making second-hand housing affordable is paramount to the social infrastructure of the communities concerned.

Young people who now wish to purchase a home invariably find themselves buying a new house which involves a long commute. This is because most of these new houses are exempt from stamp duty for owner-occupiers.

The knock-on effects of this are harsh. It leads to the disappearance of inner city communities and adds to traffic congestion and CO2 emissions.

When Mr Cowen makes comments that imply he’s more concerned with construction companies making large profits than with people being able to have the quality of life they deserve, then he should be held to account.

Voters should opt for a government that weighs the social consequences of its taxation policies.

Noel Cregan

7 Elm Grove

Ballinlough

Cork