Mr. Seamus Coffey:

I suppose one of the reasons we would be concerned about the housing market is just because the output is so low and much higher output is needed. On foot of the supply shortfall in recent years, we do not need to reach an equilibrium level of housing output, whatever that may be. Rather, we need to exceed it for a period in order to deal with the shortfall that has built up in recent years. Our concern is that may happen. We may get a large increase in housing output but if it is dealing with the shortfall that has built up in recent years that is not a sustainable level of output. It will then drop down so any revenues that arise, because housing construction is tax-rich from a Government perspective, should be considered temporary and transitory. As Deputy Broughan said, it is about looking at the overall impact on the broader economy. Perhaps there is an excess focus on this one particular area which is, as the Deputy noted, malfunctioning. However, our concern is that if and when housing output does increase - both in the context of public capital spending on housing and maybe, in particular, private spending on housing - we do take into consideration the fact that some of those increases may be temporary.