Mr. Seamus Coffey:

We have endorsed the macroeconomic forecast from the Department of Finance which shows reasonably strong growth over the medium term, including growth this year of more than 5.5% and between 3.5% and 4% over coming years. That is on the basis of a 4,000 unit increase in housing output each year. We are trying to identify in the risk matrix the Deputy has referred to factors which might change those growth forecasts. Housing output could rise by more than 4,000 units. That estimate is reasonably modest and, as Dr. Lawless has said, an issue with housing output is that it is a labour intensive sector, which might lead to distortions in the allocations of resources in the economy. Given current forecasts, with the unemployment rate dropping down near to 5%, if there is a large increase in housing output, where will the workers come from? Will they come from other sectors within the economy, which might lead to wage pressures and competition between sectors, or will they be brought in from abroad as we have done previously?

We would like an increase in housing output from the point of view of the competitive concerns that Dr. Lawless raised, but the issue is how we fit that activity, in a sustainable way, into an economy that is operating close to its potential.