Dr. Gabriel Fagan:

Again, this faces the issue of the responsibilities of the Central Bank, which are not regarded as including the setting of individual tax rates, policies or incentives. As I have stated, we do not want to comment on the details of policy, but in general I think we all agree that the fundamental problem with the housing market in Ireland is a problem of supply. There is inadequate supply. The Governor has mentioned in his letter that any measures taken by the Government to address housing problems should try to avoid exacerbating the distortions that are seen in the market. My essential point, without commenting specifically on the detailed proposals of the ESRI, is that the best way forward is to focus on the supply side in the housing market rather than stimulating demand for housing.