Martin Cullen (Waterford, Fianna Fail)

Those involved would have had to do so because they would have had to have the 20% provision. They would have been obliged, one way or the other, to renegotiate with the local authorities. We are back to square one. Allowing them to wither would have achieved the same end as that to which the Senator referred.

Another approach was to opt for supply and see if I could obtain a community gain from such an approach. I decided to pursue this approach. Relative to what has been happening in recent years, the inflation in house prices has dropped dramatically – although not to the level at which I would like it to be. I have made the point publicly that if one was to consider matters going forward, net income will not change that dramatically in the coming years. We have given back so much that we are at the bare bones of what the tax system should be delivering. In terms of the world economy and our competitiveness, we will not see substantial wage increases. People's incomes will remain quite static in the coming years. In terms of the ability of purchasers to pay, they will not be able to gallop in pursuit of spiralling prices. If that was the case, nobody will be able to buy anything. I have made the point directly in public commentary and when speaking to representatives of the building industry, that we must pause.

Now is the time to maintain supply. In the region of 54,000 to 55,000 houses will be built this year, which will be a record. We have arrived at this point after many years of cranking up everything to increase supply to match demand. We need that consistent level of supply for the next ten years. Experts claim that the provision of 50,000 to 55,000 houses will be required per annum during that period in order to meet demand. The way to maintain price balance in the market is to increase supply. That is why I took this option. I do not have a fundamental disagreement with what the Senator suggested. If she were to think this through, as I did, she would realise that the best way to do what she wants me to do would be to allow these permissions to wither. We can forget about the spend that could have been involved in the next two or three years in terms of challenges in the courts and further planning negotiations. I opted for supply and a bonus and I think I achieved the right balance.