Peadar Tóibín (Meath West, Sinn Fein) | Oireachtas source

Gabhaim buíochas as an cur i láthair. I cannot say how shocking it is to Irish ears to hear sentences to the effect that the ECB is not minded to attend the banking inquiry. The ECB played a significant role in Ireland’s economic crash. Professor Honohan would do a significant favour to the Irish people if he were to communicate robustly to the ECB the committee's view that it should attend. He should use any mechanisms required, such as putting forward a motion to try to exert pressure on the ECB to make it attend. There is no doubt about how angry people will be when they hear sentences such as the one to which I alluded. I acknowledge that Professor Honohan does not want to labour the point on this issue so I will proceed to my next question.

For me the role of the Government is to ensure prices of houses are kept low. High house prices really only benefit banks in the long run. It is also the role of the Government to ensure prices are steady in the long run so people can plan for the future. It seems we are now entering a period in which the opposite of those two points is the case. House prices are unsteady again and in some places they are rising incredibly quickly.

The Governor mentioned that there is no credit bubble in the property market currently. There is not but there is a bubble in the price, and that is coming from the supply side problems in the main.

The banking industry plays a big role in that supply side with regard to credit. What can be done to ensure that credit goes to the individuals seeking to supply extra units in the areas of greatest demand to ensure that the objectives of the housing market are met?