House-buyers who had put down a deposit on a property but had not completed a binding con- tract were being treated unfairly under the transitional arrangements in the Finance Bill, the Dail was told yesterday.
Mr Michael Noonan, Fine Gael spokesman on finance, moved an amendment to the Bill that people who had agreed the purchase of a house on April 23rd and had paid a deposit would not be caught by the restrictions which disallowed them interest relief on borrowings against rental income.
His proposed amendment to the Finance (No 2) Bill was defeated by 66 votes to 54. The Minister for Finance, Mr McCreevy, said a line had to be drawn in regard to the transitional arrangements. Booking deposits were not an obligation, but rather an expression of interest and, as a High Court case had recently high-lighted, both parties could walk away from a booking deposit situation.
"If Deputy Noonan's amendment was to be effective, the only people who would benefit would be the people who bought these properties for investment purposes. I am more interested in helping the first-time buyer," he said.
