Jim Higgins (Fine Gael)

I join other Members in congratulating the Minister on his double appointment, as Tánaiste and on being returned to the all important finance portfolio.

What came across very forcibly to me during the course of the general election campaign — I canvassed in the north west area, comprising nine counties — was the number of houses that were vacant in new housing estates. The Central Statistics Office published a figure in the wake of the publication of the census of population which in its estimation showed that 40% of the houses surveyed during the course of the census did not have any occupants. I thought that was an exaggeration, and that the husband and wife or the partners were out at work when those carrying out the census called.

Having canvassed in six of the nine counties in the north west region I was horrified at the number of gorgeous houses, valued at between €300,000 and €400,000, in huge housing estates which were finished to perfection but did not have any blinds, curtains or occupants. It was not something that occurred in isolated areas but in 200 to 300 exotic private housing estates. That reflects what has happened. We have had a building boom, speculators have built houses and there are houses available but it was inevitable that we would reach saturation point. Undoubtedly, we have gone beyond that point. Many people who speculated and built houses will find themselves in trouble.

The Minister referred to the incremental interest rate increases of 0.25% imposed by the European Central Bank. The increases look small but eight increases of 0.25% amount to an increase of 2%. People who took out a mortgage of €350,000 or €450,000 are now watching their budgets and are engaged in penny pinching. I welcome the stamp duty relief but I agree with Senator Quinn that the money could have been better used if a maximum threshold had been imposed.

Envy is a reality, both in this country and, more generally, in the Celtic tiger economy. I sit in the European Parliament every week and its Members marvel at how the Celtic tiger was created. The various partnership agreements, commencing with the Programme for National Recovery, played a crucial role. However, the Irish economy is currently over-exposed in terms of its dependence on the construction industry. Approximately 280,000 people are employed in the industry. If the boom ends and the bottom falls out of the market, many of those people will have to return to Latvia, Lithuania and Poland. I hope I am wrong and I have no wish to be a prophet of doom but an increasing number of economists are predicting that the economy is in trouble and is facing even stormier waters than appear on the horizon.