Peter Mathews (Dublin South, Independent) | Oireachtas source

I commend the previous speakers on their excellent observations. I had experience in this area in the 1980s. I worked with ICC Bank and I was responsible for providing development finance to large house building groups such as Sisks, O'Malleys, Sorahans and so on and to those building apartment blocks in our cities. Generally, the bank took a hands-on approach to what was happening. One does not live in square metres or square feet; one lives in cubic feet. Anywhere people live or spend a minimum of eights hours a day sleeping or looking after children is a cubic space.

Psychology studies have shown that children who grow up confined to low-ceilinged rooms with poor window aspect have lesser emotional and intellectual development than children who, for example, grow up in badly heated apartments. It is very important for the human mind that one is not depressed or stunted, which is literally what happens when there is not sufficient ceiling height. Developer-builders who added an extra four or six inches to the average height sold their apartments at better prices because when they were showcased, people thought there was a nice feel about them because they had good aspects and balconies. When we were considering the financing possibilities for apartment developments, we looked at the plans - kicked the tyres as the Americans say - and looked at ceiling heights, materials, partitions and anything that physically made sense. If one does things that make physical sense, financial well-being follows. Deputy Wallace mentioned Dominick Street where rents are now at €1,500 a month or €18,000 a year. That represents a huge portion of gross income, which the average wage could not handle, in particular before tax and USC are deducted. For an investor, a 7% or 8% yield on €18,000 a year would be €270,000. One arrives at the investment price by multiplying the annual rent by 15. That is what people look for in cities around the world, such as Berlin.

I will try to connect a few other wheels and cogs on the position of the country. Does the Minister of State remember what is in the drawer of Professor Phillip Lane, which was previously that of Professor Honohan? There is €25 billion outstanding of promissory bonds. The big trick was to liquidate IBRC in February 2013, which Deputy Wallace is very familiar with. The promissory note which was then about €28 billion was converted into €28 billion of promissory bonds long dated for 40 years.

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