With the Government in no doubt about the extent of its dependence on the property industry there is now a clear case for some major reform of the tax system.

Everyone knows that the housing market is going through a difficult time - with little trading-up or trading-down happening the new homes market has been left exposed.

So, too, has the Government as more than €400 million went missing from its coffers so far this year because of a dramatic fall off in the stamp duty take.

It's a well known fact, especially in Ireland, that if you cut tax, the revenues invariably shoot up.

The best example was the halving of the capital gains tax to 20 per cent by Charlie McCreevy which resulted in a trebling of revenue within a short period.

The property industry is now banking on Brian Cowen doing the same for stamp duty in the December budget. Halve the top rate to 4-5 per cent and see the investors moving back into the market to take advantage of the increasingly keen prices. If he does nothing the ice age will continue.

Already most building sites have seen a fall off in construction activity while builders have mothballed entire schemes. They won't be rehiring until all their completed stock is sold and occupied.

A cut in stamp duty has the potential to get the market moving again and to bring back some of the missing tax revenues.