Michael McGrath (Cork South Central, Fianna Fail) | Oireachtas source

The Minister did not answer my direct question about a cost-benefit analysis. It is recommended in the Indecon report that one be carried out after a period of time. The consultants made the point that they were only able to make a very preliminary assessment. The Minister has said that he will take into account the data and that he will be in a better position in advance of the next budget. How will that happen and what will the Minister base it on? Will the Minister commit to doing the detailed cost-benefit analysis that was requested?

Indecon made the point, and I agree with it strongly, that the key challenge for the housing market is to reduce the cost of housing, including house prices and the costs of construction. I do not see any effort being made by the Government to tackle that issue to bring down the actual costs of delivering homes. Perhaps the Minister will comment on that.

Goodbody forwarded an analysis by email just a few minutes ago. The issue of the escalating prices is accelerating. Goodbody makes the point that following the strong monthly growth seen in July and August, prices have risen at an annualised pace of 27% in the most recent three month period. Goodbody is raising its outlook for growth in 2017, with an increase from a forecast of 12.5% up to 15% now looking a reasonable prospect. It is actually getting worse and is accelerating. I am not blaming the help-to-buy scheme for all of that, and nor is Goodbody in its assessment, but the key question is what the Government is doing to bring down the cost of delivering homes. There is general agreement that supply is the main issue, but costs and prices are rising, and home ownership is going beyond the reach of more and more people as time goes on. These are the key issues the Minister needs to focus on.