Mr. Donald MacDonald:

The issue is how complex building has become as a result of the regulations that have been brought in. I spoke to a builder-developer yesterday who builds apartments. He has built between 600 and 700 apartments per year for the last few years. He said he now has planning permission for 200 apartments but as a result of the new regulations, he will not start on the site because there is a mismatch in what he has been asked. That could be down to fire or the type of construction. There is a lot of complexity involved and the individual in question is an expert and a member of the IHBA and CIF.

If we take a small builder in a town who has planning permission to build 70 houses and 30 apartments, how will he build 30 apartments? He will not have the technical expertise and, as we mentioned, he will not have the capital - the money - either. Even if he were to start, the way construction inflation in materials and labour has gone in the past few years would make that a challenge. On the other side, how much would he sell those apartments for? That is a challenge as well.

To add in this tax just makes the whole area that bit more uncertain. Mr. Farrell and other members meet people around the country who are saying they will do something else with their time. They may have another business. In one case yesterday, someone said they were not going to build 300 houses but would concentrate instead on the other business where they are able to make money.