The Minister for Finance cited a newspaper report to back his belief in the efficacy of special steps to help first-time home-buyers.
Referring to the Finance No 2 Bill, passed by the Seanad yesterday, Mr McCreevy said the legislation was designed to get the investor out of the housing market.
Asked by Mr Paddy Burke (FG) how soon they could expect to see the necessary "dent" in the market, the Minister pointed to a report in last Thursday's Irish Times property section which had stated that all 35 houses in a newly marketed estate in Dublin had been sold to owner-occupiers.
This proved the Government's strategy appeared to be having an immediate effect, he said.
The Minister agreed with Mr Denis Cregan (FG) and Mr Michael Finneran (FF) that something needed to be done about the supplementary welfare rent allowance scheme.
This was costing almost £40 million in the Eastern Health Board area alone, he said. A ridiculous situation had been reached in some parts of the country where young couples could not get homes because they were already rented by health boards.
People were paying fortunes for rat holes. It was an absolute scandal because of the rising cost to tax-payers and, while it was difficult to address, he felt it should not be beyond the wit of the relevant Government Departments to get to grips with it. Earlier, Mr Cregan said the scheme cost the Exchequer up to £7 million annually.