Kieran O'Donnell (Limerick East, Fine Gael)

The Minister did not answer the question as to what lessons were learned. The sustainable level of new housing completions is 50,000 units per annum, not the 60,000 units he claims. The budget figures are flawed as they were based on this completion figure. The ESRI flagged to the Minister that sustainable housing levels were approximately 45,000 to 55,000 units.

The Minister referred to young people now being able to afford houses. What about the 100,000 people who bought houses in 2005 which are now in negative equity? They went from 58,000 in 2002 to 69,000 in 2003 to 77,000 in 2004 and 81,000 in 2005. Still alarm bells did not go off with the Minister. He was cheerleading the growth in house-building. Interest rates were artificially low and these levels could not be sustained.

The Minister was advised by the IMF in late 2005 that house prices in Ireland did not reflect economic reality. In 2006 the Minister told everyone to build away because the economic fundamentals would sustain it. The Minister should instead have taken corrective action. Does he take responsibility for what has happened in the housing market? Does he agree he should have moved earlier on stamp duty reform?

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