The opposition will attempt to capitalise on the housing crisis before the Government announces new measures on the issue, with Labour tabling a Dail motion for debate on the matter next week.
As the Cabinet prepares to consider tax changes next week to damp down house prices, the Fine Gael leader, Mr John Bruton, yesterday pledged to make housing a major issue in the Tipperary South by-election.
Both Fine Gael and Labour called for the compulsory purchase of housing land they believed is being "hoarded" by speculators who believe they will make larger profits if they sell later.
The Cabinet is to consider a new report on the house price problem from consultant Mr Peter Bacon at next week's Cabinet meeting. It will discuss a number of proposals including a reduction or elimination of stamp duty for first-time buyers of second-hand houses below a certain value, and some capital taxation incentive to owners of housing land to sell it for development.
The Labour Party housing spokesman, Mr Eamon Gilmore, yesterday said his party would move a motion during its Private Members' Time next week calling on the Government to force owners of housing land to sell it to allow more houses to be built.
He blamed the Government for making the housing crisis worse, as "its decision two years ago to reduce Capital Gains Tax simply encouraged investors and speculators to enter the housing market for profit at the expense of first-time buyers".
He called on the Government "to create special land banks by placing land in public ownership, which can then be used to build much-needed accommodation". Government policies had made it even more difficult for first-time buyers to get into the housing market, he maintained.
The Fine Gael leader, Mr Bruton, also blamed Government inaction for rising prices. Compulsory purchase of land near main transport routes, stamp duty cuts for those seeking modest houses and extra mortgage relief for each dependant living in a house should be introduced, he said.
"By world standards Ireland is a country with plenty of space and comparatively few people", he said. "We should not have a problem finding homes for our people. Yet this Government, by their inaction, have turned housing from a problem to a crisis."