Arthur Spring (Kerry North-West Limerick, Labour) | Oireachtas source

This is part of the problem we are experiencing the housing market. Approximately 80,000 homes were being built annually a decade ago. If Ulster Bank and all the other financial institutions are providing only 10% of the construction finance they were providing at that time, only 8,000 houses will be built annually. This figure is nowhere near what the market needs.

Ultimately, if one is to look at how this will affect supply and demand for the housing market, it will reduce the amount of supply while demand increases. Accordingly, the price of the houses goes up. The value of Ulster Bank’s loans and balance sheet will improve as a result of the restriction of the marketplace. I have a problem with this and believe the Central Bank has a larger role to play in this.