Dr. Lorcan Sirr:

Senator Victor Boyhan asked me a question about inflating land prices being Government policy. I will give three examples of this practice. About 18 months ago the Minister for Finance, Deputy Michael Noonan, stated prices needed to rise a little more. My take on that statement is that it reflects on the viability of selling off banks. In terms of NAMA, at the launch of pillar 3 or 4 of the strategy in the Green Isle Hotel, Mr. John Collison, the head of the agency's residential portfolio, stated the viability of the agency's residential portfolio depended on rising house prices. I was in the room and Mr. Collison's statement surprised me. Pennies begin to drop, however, as one realises measures such as the first-time buyer's grant will do nothing but increase prices.