Mick Wallace (Wexford, Independent)

I agree we need both. I suggest the domestic economy needs more help than the other side mentioned by the Minister. I was interested to read what the Nevin Economic Research Institute had to say about this matter the other day:

The current levels of unemployment are unacceptable and constitute a serious threat to social cohesion and not just the sustainability of future public finances. Failure to make serious inroads on the level of unemployment will cost more in the long-run than any short-term savings in public expenditure arising from further fiscal austerity. The biggest single obstacle to creating employment is the depressed state of the domestic economy in both parts of Ireland.

I accept it is not easy to drive the domestic economy. I know from my own business that access to money continues to be a problem. The fact the banks are practically closed for many people is killing demand. The fundamental lack of demand is a serious issue across the domestic economy.

I will give an example. I have a site with planning permission for 28 houses. I cannot sell it for €15,000 per unit at the moment. Not only is there a lack of demand, but there is also a lack of access to money for anyone who might want to buy such a site. Planning fees are almost as high as current site values. I do not think we have seen the bottom of it. When people ask me whether prices have reached the bottom, I tell them I do not think they have. They will not reach the bottom until we tackle some of these serious problems. Similarly, house prices will continue to fall until we deal with the mortgage crisis. If someone asks me tomorrow whether they should buy a house, I will tell them to wait for another while because prices will continue to fall until these issues have been dealt with.

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