Charlie McCreevy (Kildare North, Fianna Fail)

I do not want to go over the housing area again because I had to introduce two additional Finance Bills to deal with the Bacon reports in 1998 and 2000. I said at that time – I said it off script on many occasions and it was lucky that I did – that any interference in the market would cause difficulties. As Senator O'Toole said, we are back to where we started. I think I will be proved correct in that the answer to this problem is supply. When supply is greater than demand, prices will go down and when demand is greater than supply, costs go up. I have been proven correct regarding the rental market.

The reverse in the 2001 budget was made with the intention of getting apartments built for letting and that has been done. I am not going to work it all out, but, if Senators consider the position they will see that it will have an effect throughout the housing market. There are only so many people looking for houses and only so many houses available. If somebody has a lot of one product on their shelf or in the form of a house and the bank manager is roaring at that person, he or she will have to start shipping or moving that product. When that happens, prices will drop and there will be a balance.

The Senators and I are coming from different ends of the spectrum. I believe fundamentally in the free market, whether that is with regard to the price of chocolate, cattle or houses and I think I will be proved correct.