Mary Butler (Waterford, Fianna Fail) | Oireachtas source

I thank the Minister for his report and I thank him and his officials for attending.

Many of the submissions we have already received from various organisations whose representatives have been before us, especially those of the Construction Industry Federation, have stated that the VAT rate of 13.5% should be reduced in some instances to 9% - and perhaps even to 0% - to try to stimulate the construction industry.

What is the Minister's thinking on that? I understand 36% of the cost of building a house goes directly to the Exchequer. What are the Minister's thoughts on that? Would a reduction there stimulate more house buying?

My second question is on the Living City initiative. Why has the take-up on that been slow and is there any way we could fast-track it? My third question is whether the Minister considers that local authorities have a greater role to play in supplying social and affordable housing. Representatives from the city and county councils group stated that they are not developers or builders and would only ever supply between 10% and 15% of the amount of housing needed in any event. Does the Minister feel they should play a greater role to stimulate the housing industry?