Brian Lenihan Jnr (Dublin West, Fianna Fail)

I am glad Deputy Burton acknowledged a major contribution to the slowdown in our economy has been caused by global factors. She is correct that domestically a major adjustment to the house building sector is under way, with output likely to decline by at least one third this year. There are also strong indications of over supply and in these circumstances a further large reduction in output is in prospect next year. There is growing evidence that the effects of the slowdown in the house building sector has spilled over to other sectors of the economy. I accept that.

I do not accept the suggestion that the Taoiseach bears personal responsibility for the slowdown in the housing sector. The major causative factor for the overheating in the construction sector was the easy supply of credit in recent years here. That is no longer the case, but it was a major causative factor in that phenomenon. That factor has come to an end and we have conditions of over supply. We must deal with the economic challenges we face here and now and not dwell on the possible causative factors for them.

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