Mr. Seamus Coffey:

There is merit in what the Deputy suggests, particularly if we link the increase in activity referenced in the previous question. If the increase in the public construction of housing was allied to additional revenue raising measures that created the space in the economy to facilitate that increase in output, it would be on a sustainable footing. If the majority of the output was sourced in the private sector, it is likely that much of it would be funded through borrowing as new houses tend to be bought by purchasers with mortgages. There would be no reduction in activity. Householders would not be cutting back in other areas to fund the initial construction activity in the economy and we could end up with an excess level of capacity. There definitely is merit in the Deputy's suggestion. The key point we are making is that if there is to be this increase in housing output, it must be funded by additional revenue measures that automatically generate the space for it. At the same, we will need to keep an eye on what is happening in the private sector to see if there is any ramp up in activity which could lead to problems, which would show up through measures in regard to debt and our current account balance vis-à-visthe rest of the world if we do start to live beyond our means. It is possible to identify these problems. If the public housing is done on the basis of sustainable revenue resources, there is an automatic cheque for it.