Tax Code.

Dáil Éireann Debate, Wednesday - 27 April 2005

Wednesday, 27 April 2005

Ceisteanna (53)

Martin Ferris

Ceist:

75 Mr. Ferris asked the Minister for Finance if his attention has been drawn to the problems faced by communities in rural parts of the State, particularly in the vicinity of seaside resorts, where the purchasing of holiday homes is driving up the cost of housing for local people; if the implementation of the recommendation contained in the NESC report on housing to introduce a separate tax on second homes would help address this growing problem; and if he will make a statement on the matter. [11118/05]

Freagraí scríofa

Minister for Finance (Mr. Cowen)

I have no plans to introduce a tax on second homes. If any such proposal were made it would be necessary to consider the possible impact not only on the demand for such houses but also on the supply of new residences and on employment and output in the construction sector generally. The history of taxation intervention in the residential property market over the past ten years has shown that it is much easier to get the balance wrong than it is to get the balance right in terms of output, prices and employment.