The immediate release of Government lands in Dublin, Kildare and Meath for the building of "affordable houses" was announced yesterday by the Taoiseach, Mr Ahern.
At least 10,000 first-time buyers are expected to benefit from the initiative, which will include the release of further State lands later in the year.
Announcing the plan at the Irish Congress of Trade Unions conference in Tralee, Co Kerry, Mr Ahern said a total of 309 acres would be released in the first phase of the initiative, and the necessary planning work would begin immediately.
The intention is that the lands will be handed over to local authorities or associated agencies, which will be charged with ensuring that houses are made available for sums that do not include the usual in-built exorbitant land prices.
It remained unclear, however, how people qualifying for the scheme would be selected. They will not be drawn from people on local authority housing lists, who will continue to be dealt with under social housing schemes.
The new plan is aimed at people who, until the housing boom, could have afforded to take out mortgages but now find themselves excluded from the market.
Asked, following his address to the conference, who would select those qualifying for the scheme, Mr Ahern said: "The local authority scheme will have to decide it. You also have to make sure that it is first-time buyers, but that is not that difficult to do.
"Many years ago, probably 30 years ago, the local authorities used to give small pockets of land out to builders on the basis that the price could not be over a certain amount and that they had to sell to first-time buyers.
"It's easy enough to regulate that. That scheme had been well there back in the 1960s and early 1970s."
Mr Ahern had earlier told the conference that the lands to be used in Dublin were those currently owned by the Office of Public Works at Jamestown Road and Infirmary Road. These would be released to Dublin City Council or "an associated project development entity".
"In addition, the Government has agreed a proposal for the release of lands at McKee Barracks, Kildare and Gormanston, Co Meath, for inclusion in this initiative."
Specific proposals on further lands to be used would be submitted to the Government for consideration by the end of September, he said.
The initiative meets a Government commitment in the new partnership programme, Sustaining Progress, and formed part of a seven-point plan proposed by the Taoiseach and senior Ministers to break the deadlock in the partnership talks last January.
"So, on housing, Sustaining Progress is delivering as it was promised it would deliver," Mr Ahern told delegates.
"These decisions demonstrate to any doubters that the Government is serious about delivering on what it said it would. In partnership we are together solving the problem of affordable housing," the Taoiseach said.
The initiative, he promised, would not detract from existing social and affordable housing programmes.
"Capital spending for affordable housing, and other social housing programmes, will amount to over €1.7 billion in 2003. We have delivered record housing output. We will deliver on affordable housing also."
Speaking to reporters following his conference speech, Mr Ahern said the new scheme would be operated in conjunction with local authorities.
"The whole initiative is based on the fact that what makes the houses so dear is the land value. By being able to have the land value at an affordable rate, it then allows the local authority, or whatever agency handles it, to control what the price of the houses is," he said.
The previous, smaller schemes had included provisions preventing the house-buyers concerned from selling the properties on quickly at market value. While he did not wish to be "over-regimental", local authorities could apply similar rules to this project.
The initiative had come from the Irish Congress of Trade Unions, he said.