Vol. 481 No. 4
8 Mr. Hayes asked the Minister for the Environment and Local Government if he will make a statement on the recent establishment of the expert consultancy group to investigate the rise in house prices; and the method of investigation and the timeframe involved in reporting to him on the matter. [16426/97]
My Department has commenced the process of selecting consultants to undertake a study of the factors influencing increases in house prices and the implications of likely future developments. The terms of reference for the study are as follows: to identify and evaluate the factors influencing the increase in house prices in the period since 1 January 1994 with particular emphasis on the situation in the Dublin region; to assess how the various factors operated in relation to house prices in different areas and segments of the housing market; to evaluate how, and to what extent, these factors or other developments are likely to operate in relation to house prices in the medium term; and to assess the implications of likely future developments in house prices generally and particularly in relation to affordability for house purchasers.
The final date for the receipt of detailed proposals from the various consultants who have expressed an interest in undertaking the study is 24 October following which the consultants will be chosen. I envisage the study should be completed within four months.
Given that this issue is effectively to be parked, the Minister and his Cabinet colleagues would be well advised to take action in the forthcoming budget to lessen the detrimental effects for thousands of people who are purchasing their first home. Even in a four months timeframe the Minister has decided to park this issue. Will he bring proposals to Cabinet and to the Minister for Finance on stamp duty and first time buyers' grant in advance of the budget?
I totally reject the implication in the Deputy's question that this whole issue is parked. It certainly is not parked.
It was parked in 1973 when Deputy Molloy was Minister — some 24 years ago.
Is the Deputy interested in listening to the reply?
We ask the questions; the Minister answers them.
The issue has been there for quite some time and I have been in the Department only a few months.
Deputy Molloy was Minister with responsibility for housing in 1973.
The outgoing Government did not take any steps in this area. I have taken an early initiative in regard to house prices to seek to establish more information in relation to future planning and policy to ensure the Government's primary objective that affordable houses are available to the new households being formed. That is the reason this study is being undertaken. There are measures which may be taken with a view to being helpful in this area. Some of the matters mentioned by the Deputy are already under consideration in the Department. I hope the outcome of the consultants' report will assist in influencing measures the Government might decide to take to ensure there will be an adequate supply of affordable houses available to the new households being formed.
That concludes Priority Questions. In accordance with Standing Orders I can now take Questions Nos. 9 and 10.
