Professor P.J. Drudy:

Deputy Mary Butler made reference to the suggestion the Government should reduce the rate of VAT on construction to 9%. While I would not have a problem with that, I would worry that the same house prices would be sought. Any such reduction would have to be reflected in house prices. Anything done would have to lead to a reduction in house prices or at least maintain them; otherwise, it would be no of use.

Bedsits have been mentioned on many occasions. Reductions in standards have been proposed, but standards are very important. I would worry about the idea because I do not want to go backwards. I would prefer to have good standards for everybody. It was argued this morning that having bedsits with a bathroom out on the corridor would be fine and acceptable as single-occupancy units. However, I would prefer to maintain standards, get units at the right price, of course, and see regulated rents.

Deputy Mick Wallace spoke in detail about the lack of regulation and I agree with him. If one thinks back to the crash, it was due to a lack of regulation. The banks were not regulated. The builders were also not regulated in the prices they could charge. There was light-touch regulation. The Central Bank closed its eyes and the other gentleman who left with a large sum of money also closed his. I will not mention his name, but members know who I am referring to. It was tragic. The State closed its eyes to the lack of regulation. It would be fair to say the lack of regulation started with none other than Mr. Bill Clinton, former President of the United States, who changed the law in that country. The Banking Act, also known as the Glass-Steagall Act, had been introduced in the 1930s, but Mr. Clinton, under the influence of a wide range of people, changed it and introduced deregulation and light-touch regulation and, of course, we followed suit. Maggie Thatcher and Ronald Reagan went for deregulation in a big way and we followed suit. Sadly, we tend to ape what others do. The lack of regulation is a fundamental problem; we must have regulation. We have regulation on the streets in the form of traffic lights. We cannot go through a red light. Surely to God, that makes sense. We cannot poison people with food. There are regulations in that area, too. Child labour is regulated in this country, but 100 years ago it was not. We must have regulation in the provision of housing.

Deputy Mick Wallace suggested there was a lack of political will and he is right, unfortunately.

I think most Deputies mean well. Most of them really mean well. I understand why they say it is hard to achieve change. It is difficult for one to go against the grain when one has vested interests constantly on one's doorstep. I imagine Deputies work very hard and have people constantly coming to them trying to twist their arms. I am trying to twist their arms today.