One of the worst inflationary pressures on individuals and families relates to house prices. The gap has widened hugely between personal disposable income and the price of a house, and is now at a ratio of 11:1. Will the Taoiseach take any corrective action on the matter? We have heard a number of announcements from the Taoiseach, the Minister for Finance, Deputy Cowen, and the Tánaiste all saying different things. The Taoiseach is on the record as saying people should buy, and would be foolish not to buy and listen to the naysayers as he calls them, although others might call them experts. Effectively the Taoiseach is talking up the housing market with his comments.

The Tánaiste has said the Government would abolish stamp duty, which has had a knock-on effect — he suggested the Government has so much money that it does not know what to do with it. The Minister for Finance said he would not interfere, despite all the property tax breaks that have certainly interfered with the market over the years. Will the Taoiseach make a clear statement of Government policy on the matter that will address the problems people are facing rather than having this Dutch auction politics, in which even Fine Gael has involved itself, trying to undercut each other with policies on stamp duty? Nothing will be done about house prices as a result of that. Any auctioneer will advise that there is a stalling of the market as it waits to ascertain whether any of these things will happen. Over the past two years my colleague, Deputy Boyle, the Green Party's finance spokesperson, has proposed targeted reforms to the stamp duty regime that would benefit older persons who wish to downsize — they should be facilitated — and people with disabilities who need to move house for accessibility reasons.

Hear, hear.

Will the Taoiseach implement these measured and targeted recommendations, which have been rejected by the Government? Has he given thought to the matter and what will he do to assist older persons and those with accessibility needs to obtain housing? Such assistance could represent a start in respect of reforms.

Our overall strategy is to increase housing supply to meet demand and to improve affordability, particularly for first-time buyers.

What about older people?

We are investing heavily in infrastructure to deliver high levels of housing. One third of all the houses in the country have been built in the past nine years. We are putting greater focus on building active and successful communities through quality housing.

But no schools.

The Deputy is six weeks too early for the financial statement for 2007.

We have the pre-budget statement.

It will be released on this day in six weeks.

On the stamp duty issue, I appreciate the constructive comments made by Deputy Boyle and others and I am sure all of them will be considered. Stamp duty applies to a range of property and other transactions, as Deputy Sargent knows. These include residential and commercial transactions and also share dealings and bank levies.

The yield from stamp duty last year was in the region of €2.7 billion. The source of revenue makes a significant contribution to investment in public services, including health care and education. There is no stamp duty chargeable on owner-occupiers of new houses with a floor area less than 125 sq. m. First-time owner-occupiers are treated more favourably owing to changes the Minister for Finance, Deputy Cowen, made some years ago. When it comes to purchasing second-hand properties, they are exempt from stamp duty on houses worth up to €317,500 and they benefit from reduced rates on houses worth up to €635,000.

Approximately one third of all stamp duty comes from residential property — that is all. Recent comments, while not made by Deputy Sargent, imply that it all comes from residential property.

The Taoiseach should look at his Cabinet, for God's sake.

And his Tánaiste.

Allow the Taoiseach to continue without interruption.

I am just trying to be helpful to Deputy Sargent. It is estimated that, in the current year, only €70 million of stamp duty, out of a total yield of €2.7 billion, will be from first-time buyers. The Government is always prepared to listen to arguments and debates but one should note that over one third of stamp duty on houses is derived from the more expensive upper end of the market.

I do not believe the Deputy is arguing for houses worth between €1 million and €2 million.

They cost that.

The point is that, of the €2.7 billion received from stamp duty, only €70 million relates to first-time buyers. The case is not as it is sometimes presented.

Most of the Taoiseach's reply, which alluded to building more houses, is probably good news for Paddy the Plasterer but it is not very good news for many house buyers. The reality is that the thresholds are meaningless in many parts of Dublin. One will not get a house for less than the thresholds. I understand the stamp duty take for this year is approximately €70 million in excess of expectations. The Government is raking it in.

About four months ago, I asked the Taoiseach about a similar matter, that is, the famous Report of the Committee on the Price of Building Land, which cost 27.5p in 1973. The committee reported to the then Minister for Local Government. The report was reviewed by the all-party committee in April 2004 and was still found to be necessary. I asked the Taoiseach about it because land prices comprise approximately 45% or 50% of house prices in the Dublin area. Basically builders are walking away with approximately €250,000 before foundations are even laid.

Will the Taoiseach do anything about this matter? When I asked him about it, he said he was and still is in favour of the Kenny report. I asked about the legislation and he said it was being drafted, that he was pressing to get on with it and that he did not agree with me. He said he would try to address the matter over the summer and that he was giving me a serious answer to a serious question. How serious was his answer? The summer is gone and we are still trying to deal with the difficulty posed by house prices. Will he implement properly the recommendations of which he stated he was in favour?

A number of points arise and there is no point in my going back over the stamp duty issues. On the Deputy's point that we are accruing far more than expected from stamp duty, I was pointing out where it comes from. It is not simply derived from residential property but from a range of sources.

The resources that accrue from stamp duty are used. Every year, we invest approximately €1 billion more in health care. We have invested €500 million in the capital programme for first and second level schools and the welfare package for this year amounted to €1 billion.

I referred to house prices.

As I said at the outset, our policy has been to increase supply — we have done so. We used to build approximately 25,000 houses per year and we now build 80,000 per year. Affordability is a key issue for the Government. In fairness to the Government, it amended Part V of the Planning and Development Act and also launched the affordable housing initiative.

The Government filleted it.

All of these measures were designed to increase supply.

Why did the Taoiseach scrap——

The latest programme, which pertains to the period 2007 to 2009, involves 27,000 affordable houses. Overall, the programme will meet the needs of 60,000 households in the various schemes in the social housing category.

We are proceeding with the proposed legislation concerning zoned land which developers hold for a period before selling. It is the key part of the Kenny inquiry and we are still proceeding with it. I still intend to bring in that legislation.

When?

What did the Government do over the summer?