Sean Barrett (Independent) | Oireachtas source

Question No. 21 states:

If the rental yield from NAMA properties is approximately 5% and as high as 6.9%? Why in your opinion is there a continuing lack of supply in the rental sector? What constraints in the development of new units exist? If they are bank-related, explain why or else a high yield is not sufficient to cover the cost of capital for the Irish banking sector which is borrowing at very low rates at present. Is there a regulatory limitation, i.e., planning, that is causing the persistent supply-demand disequilibrium?

I refer to the reply which I spoke about under "Matters Arising". I refer to the last sentence of the first paragraph which reads, "Given that construction costs have been relatively stable over the last decade commercial viability is largely determined by projected sales prices." Is that not the problem that everybody else in this State, including NAMA, has adjusted costs downward and the construction industry has not done so and it is waiting to be bailed out again? Agriculture, industry, retail, everyone else, used this recession to restructure their operations and public service pay was reduced and that is the point made by NAMA. I do not know whether it is in the planning laws or the fact that construction expects to be bailed out and it enjoyed its millionaire status up to 2007. How do we get an efficient construction industry which is able to negate the NAMA statement that given that construction costs remain relatively stable for a decade when everyone else has taken quite substantial declines? How do we get an efficient construction industry?