Paschal Donohoe (Dublin Central, Fine Gael) | Oireachtas source

I will respond to the different points the Deputies made.

Deputy Boyd Barrett asked about the property sector and what he believes is taking place with regard to property prices and the significant difficulties to do with homelessness. He first asked me whether there was a European sphere of engagement on this topic. I must emphasise that policy on the delivery of housing, whether it be social housing or planning policy overall in the development of private accommodation, is nearly entirely a matter of national competence for governments. Decisions on areas of planning and public housing are made at national Government level as opposed to decisions that require engagement or consent from other Governments or from European bodies.

I note that Deputy Boyd Barrett went on to rephrase the question in the context of macroeconomic imbalances. Of course, the Deputy is correct to note that the fiscal governance treaty and the European Semester process make reference to macroeconomic imbalances, a macroeconomic imbalance being a development within an economy that could have a seismic effect on either the health of the economy or society itself. In terms of engagement with Europe on whether what is happening in the property market represents a macroeconomic imbalance, I would argue that it does not. The reason I say so is that the property price increases are happening in the context of prices - for example, in Dublin - having come down by nearly 51% from their peak. It is also happening in the context of a property market that does not have as many properties available for sale as would be the case in a normal housing market, which, hopefully, will develop in the coming period. As to whether I believe the increase in house prices is a cause of the homelessness problem, I would argue it is the lack of housing supply that is more a direct cause of homelessness than the changes of price in the housing stock, and that is something to which the Department of the Environment, Community and Local Government and Dublin City Council are responding. I am aware of the work they are doing in my constituency in that area.

On the point Deputy Dooley put to me regarding the different approaches at the European summit in dealing with Crimea and Ukraine, different views were articulated in public on how a response of this magnitude should be dealt with, but I would emphasise, before I come to the Irish response, that there was complete unity from all the Governments - Deputy Martin acknowledged this in his statement - regarding the measures that were agreed at the European Council. Everybody agreed with the plans that were in place and the overall framework that Europe has for dealing with this issue.

In terms of where Ireland was specifically in relation to this, Ireland supported the expansion of the phase two list - in other words, the subjecting of further individuals to the measures of which the House will be aware - and supported the work that the Commission is now doing to scope out possible measures for broader action and the cost and benefits of those different approaches.

On Deputy Dooley's concluding point with regard to the banking sector, I re-emphasise that due to the investment that has already been made in the banks by the Irish taxpayer, the Government is strongly of the belief that the banking sector is capitalised and is able to deal with the difficulties that we know are still there. I point to the fact that some of the banks have been more successful in selling their own bonds, which would indicate that those who are looking to invest in those banks hold the same view as they look to buy that debt.

On his point regarding retrospective recapitalisation, to be clear, it was due to decisions that were made by the previous Government, led by his party, that we have difficulties of this scale. The Taoiseach has been clear that in the context of a banking union that will be operational within the next 12 to 18 months, we will look at all measures to get value back for the Irish taxpayer in the banking system.

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