Tom Morrissey (Progressive Democrats)

The suggestion that the Government has presided over a trebling of house prices is a cheap shot. The reality is that in 1995, housing output comprised 30,000 private and public units. Less than 4,000 houses were built in the public sector in 1995, compared to 6,000 in 2002, from a total of 55,000. Some 67,000 houses will be built this year, which is a dramatic figure by any standards across Europe. Last year, we were told that 55,000 was a record figure, so 67,000 is truly a dramatic total.

Figures released today by the Central Statistics Office show that we had a net immigration of 41,300 people last year, compared to a CSO estimate of only 29,000. This demonstrates how difficult it is to keep up with the demand for housing, including local authority housing lists. The estimated increase in immigration of 19,000 indicates an increased demand for 6,000 houses based on three-person households.

No Government has provided more for housing. In 1996, a total of €451 million was provided from the public capital spending programme, which is 10%. Today that figure stands at €1.7 billion or 20%. The increasing demand for housing has resulted in house builders and developers having been able to increase the price of houses over the last few years. However, with an increase in supply coming on stream, particularly in Dublin, we should see a levelling off in price increases. I do not expect that the increase in levies will be paid for totally by house buyers because with an increasing housing supply, builders will be unable to pass on the full cost of these new levies from next year.