Professor P.J. Drudy:

I happen to agree with practically everything said by Deputy Durkan. He is unhappy with the private rented sector and we are certainly in agreement with that, as it has not worked. The process was foolishly handed over to the private rented sector. I agree absolutely that the local authority loan was a great idea, with loans given at a reasonable mortgage level. The loans were repaid and people owned their homes. I have no difficulty with people owning their homes as it is an ideal in many ways. Unfortunately, some people cannot possibly afford it because of the way prices have gone. I would love it if everybody owned their houses and if every house cost less than €100,000. I do not care how elaborate they are and whether they are in Foxrock.

I completely agree with the Deputy's comments on local authority builds. It is interesting that the certificate of reasonable value was raised as I agreed with that but it was eliminated. It was difficult to administer but nevertheless it was a good idea. The builder charging an outrageous price for a house would be under surveillance, told if it was unreasonable and be told if a profit of 50% or so was being asked for when it should be 10% or 15%. Deputy Wallace will tell me the right figure but 50% or anything like it would be ridiculous. Local authority housing is a good idea and the Deputy is correct to refer to it as such, as it was local authority housing. I agree with the comments on direct built and the loans from local authorities. Why should it not be reinstated? The banks might then have some manners, as they have no manners now.

It was mentioned that building societies were mutual, as they were, but suddenly Irish Permanent became whatever it became, with a gentleman in charge who got into some bother way back. Some of you will not remember that. He flogged it off, as the rest of them did. People were inveigled to agree with him by getting a few hundred quid or some sort of share offering. The mutual idea is gone and it should come back. I agree that voluntary housing should be providing much more. The Deputy suggested that sites should be made available, which is a good idea. Why not have co-operative housing?

Deputy Durkan's contribution had a range of useful elements. I agree with Deputy Funchion's comments about children being so badly treated, which is appalling. I agree with Deputy Coppinger's comments regarding decreased rents, although it would be difficult to achieve. They are far too high, which is wrong. They have a negative impact on the economy, as the Deputy mentioned. She also spoke about children and families suffering, with migrants being in a particularly vulnerable position and suffering very badly. There is no excuse for it. The Deputy also mentioned the debate in the Government and pressure from the private rented interests, particularly Kennedy Wilson. A letter went to the Department of Finance - Deputies may be familiar with it - putting pressure on the Minister, Deputy Noonan, and his advisers. It indicated that the world would cave in and the market should not be interfered with. My point that the market is imperfect and monopolistic, was not accepted. It was a strong argument, and I understand the letter went to two or three pages, arguing that under no circumstances should the Government introduce rent regulation. The Minister, Deputy Noonan, and the Taoiseach, Deputy Kenny, were persuaded by it. I suppose it might be unfair to say that the philosophy of Fine Gael and to some extent the Labour Party would preclude them from doing anything radical. Maybe I am wrong and Deputies may correct me if so. The past and what I say does not matter but it is important to get it right in future.

A compromise was reached and rents can be changed every two years. That is a joke.