Noel Ahern (Dublin North West, Fianna Fail)

The EU publishes an index of the number of new houses built per year per 1,000 head of population. Ireland is at the top of the league with 17 new dwelling units per 1,000 head of population annually. Portugal builds under ten while the UK builds one and Sweden builds three annually. We are miles ahead of every other member state because housing output has been enormous. We are racing to stand still because of the significant demand that has resulted from economic expansion and the return of large numbers of emigrants who left when the country was not doing well 20 years ago. Those who left were in their early 20s and lived in their parents' homes prior to emigrating. They then returned with families in need of new homes, resulting in significant pressure on housing. However, the increase in housing output has led to great progress in this regard.

The rate of house price increase is a problem. However, affordability is also a problem. Affordability comprises price, income, tax and interest rates. The cost of a house may have increased by 300% in ten years but one must examine what percentage of a couple's net disposable income was spent on mortgage repayments in the early 1990s compared to 2004.

I accept that house prices have increased and that houses are less affordable than they used to be, but it is very marginal. The problem is worse in Dublin than it is in the rest of the country. While house prices may have risen by 300%, the affordability index indicates that this does not mean they are three times less affordable.

When there is a booming economy, as we had in recent years, demand for houses always increases. When there is a recession, which often happens, usually when Fine Gael and Labour are in power, there are lashings of houses.