Mr. Eddie Casey:

It is important to stress that we think it is a good thing that housing could increase at a faster pace than is currently the case and we would welcome that. The concern is that the rest of the economy appears to be getting to the point where it is close to its potential. In other words, it is entering a position where overheating more generally could arise. Rapid housing construction has the potential to push the economy over the edge and to overheat. Other levers that are available to the Government and policymakers would need to be used to dampen down the potential of any strong housing response. For example, fiscal policy, be it tax or expenditure changes, could be used in a way that offsets the increase in demand and the potential capacity constraints that arise due to housing elsewhere.