Since the Taoiseach entered office in 1997, the price of housing has doubled, rents have doubled, the number of homeless has doubled to 5,500 and the number on local authority housing lists has risen from 26,000 to 48,000. In the most bitter cut of all, retrospectively applying the 1% VAT increase will add a further €2,000 to the average house being purchased by young people. That increase follows the abolition of the first-time buyer's grant of almost €4,000. A total of €6,000 is being added to the agony of young people who are trying to buy their own homes in the last three weeks. Will the Taoiseach agree to follow previous practice where the implementation of increased VAT charges follows a transitional arrangement that will protect those who have signed contracts? How can the Taoiseach justify 8,000 people, having signed contracts to purchase their own homes, finding that at the stroke of a pen they will now be charged an additional €6,000 on average as a result of the deliberate actions of this Government?

The first-time buyer's grant was abolished at the stroke of a pen and now VAT is being applied retrospectively. Will the Taoiseach agree that the transitional arrangements put in place the last time VAT was increased will be applied now and that 8,000 people will not have that additional element imposed on the contract price of houses they thought they had purchased for €6,000 less three weeks ago?

The Minister for Finance made provisions last week for tax issues and VAT. The Deputy should table a question to the Minister to inquire about these issues. The last time such a change was made was in 1993, when I restructured the five VAT rates to two rates of 12.5% and 21%. VAT on houses at that time was 10%, having doubled in a few years, and I increased it by 2.5%. It was for that reason the changes were made in 1993.

I do not accept the other points made by the Deputy. We are building record numbers of houses as the demand for them continues. We completed over 5,000 local authority houses in the last year.

For investors only.

I do not think investors live in local authority houses. A further 7,000 houses are under construction. Between 1997 and 2001, 18,400 local authority housing units were provided. I am aware of the numbers on the waiting list. We have also been supporting the voluntary housing sector by providing 4,000 units. A further 1,500 units will be provided this year and we have also implemented a number of other measures for next year. There is more than €1 billion in the housing budget for next year to continue the rapid increase in the housing sector. Deputy Rabbitte spoke about people who have signed contracts. These people will receive the new housing grant, therefore, they will not be disenfranchised because they will have the new housing grant and they will be able to avail of the tax relief introduced last week.

Does the Taoiseach think it is any comfort to people who have had charge after charge piled on them as a result of the Government's earlier mismanagement of the public finances to say that I can put down a question? I am asking the Taoiseach what he will do about it? I am asking him if it is not standard Revenue practice to permit transitional arrangements such as I have suggested? Given the miserly €10 million he purports to claw back from people enjoying tax shelters and loopholes of various kinds, why is he allowing these people two years to accommodate to those changes while applying retrospectively the VAT increase for young people trying to buy a home of their own? How can he justify capping the rental allowance so that tenants are now exposed to the full savage rent increases happening in the marketplace, which will lead to additional homelessness, an additional €5 per week on average to a poor person on supplementary welfare allowance, while giving back 16,000 sites over the next three years to builders because he cannot enforce the agreement the Minister, Deputy Dempsey, made with them and which he is now backing out of? Surely he can agree that the transitional arrangement, which is normal Revenue practice, will be applied in this instance.

The question the Deputy asked is one for the Minister for Finance who made the position clear last week. VAT on housing will increase to 13.5% from 1 January. The only transition arrangement of which I am aware was when I introduced a 25% increase, from 10% to 12.5%, which was not a normal Revenue arrangement. This took place when a restructuring of five rates of VAT was taking place.

Why not do it again?

Because we are not restructuring five rates of VAT. We are not increasing it by 25%.

The Taoiseach without interruption.

The Government will continue to build a record number of houses in both the voluntary housing sector, where 4,000 additional units have been built, and the local authority housing sector, where there are substantial numbers. We will continue to have a proper policy and comprehensive programme to tackle homelessness, which is being resourced very successfully. We will continue to implement these policies.

That is pathetic.