Shane Ross (Independent)

It would be useful for this House to hear the Governor of the Central Bank issue a serious warning — I had intended raising this subject before Senator White so rightly raised it. Nobody can predict a property crash because nobody knows when one will occur, however, there is a real possibility that something nasty will happen in the area. Something nasty has already happened in that house prices, as Senator White said, have gone beyond the reach of first-time buyers and some second-time buyers. There is a case for Government intervention.

The principal problem appears to be that young people are being lent far too much money by the banks. It is not a problem currently but it will be a problem if interest rates rise. This House will then have to call in more than the Governor of the Central Bank to explain the situation. If there is a house price crash of that sort, we will have a negative equity situation and young people will not be able to repay their loans. This is the reason I feel the governor should be invited to the House.