Jim Walsh (Fianna Fail)

I support the call for a debate on housing, particularly affordable housing. I also examined the report by the Central Bank which, it is fair to say, is predicated on house prices continuing to increase in the 12% to 14% per annum range. However, it is not clear this will happen. If interest rates increase by a few more quarter percentage points, this will have a dampening effect to some extent. However, it is an area where we need to ensure people, particularly young people, as Senator Maurice Hayes noted, are able to afford to buy their own houses. This is very much part of our culture and tradition in this country. While income levels in general and increasing income will drive up house prices, there is the fear that increasing house prices are driving up incomes to possibly uncompetitive levels. It is a very serious issue.

I ask the Leader to arrange for a further debate on pensions at some stage. I am aware Senator Terry has carried out a considerable amount of work in this area and has strong views on it. However, I cannot share her view that we will not experience difficulties and challenges in respect of pensions simply because of the findings of the report by NCB Stockbrokers. We heard reports last week that approximately 50% of babies born today, particular females, will live to the age of 100, given the improvements in medical care. This area will, undoubtedly, present a very strong challenge. I am a strong supporter of the very courageous move by the former Minister for Finance, Charlie McCreevy, in this area when he put a number of billions of euro away to plan for this. We need to do this. Senator Terry has a different point of view, which is worthy of debate.