Fiona O'Malley (Progressive Democrats)

I am glad of the opportunity to speak on the economic outlook because we need to take a sense of perspective about the economy. I was prompted to speak to the motion as outlined by Fine Gael and the reference to the 10% fall in house prices and the possibility that 100,000 young families face negative equity. In politics one has to be consistent. Three years ago everyone was giving out about the steep rate of increase in the cost of housing, particularly in Dublin. It was of concern since it was putting housing out of the reach of many ordinary families, and that was not desirable. Equally, it is not desirable that prices are plummeting. That is not the correct term, but the impression is being given that they are hurtling downwards at this point. I do not believe that is a fair description of what is happening.

A correction is being made to the housing market and this is to be welcomed. Most people who buy a home regard it as an investment for an extensive period. They do not do it on a speculative basis. We hear on the airwaves that so many families are in negative equity. It is immaterial, since if it is one's home, one is not about to sell it, so what difference does it make? It is only material if one intends to sell it — and most people buy their first home on the basis that they are staying in it for a while. They do not intend to watch the property market and speculate on their home. It is terrible to give the impression that people are living under this enormous threat.

The notion of negative equity is a burden. Naturally, if people cannot afford their mortgage payments, especially if they are increasing, as is happening at present, they are forced into a sale. That is a different matter and is very regrettable. However, the proportion of people in this position is much lower than the hundreds of thousands who continue to pay their mortgages. I agree that they might well pay less today for a home than, say, 18 months ago. The property pages of the newspapers show that prices are coming down. However, that is the opposite to what the Government was being criticised for two or three years ago.

Inconsistency is one aspect of an Opposition that galls me. I like the discipline of consistency, which is necessary when one is part of a Government. Ultimately, that is what politics is about. I hope I shall be forgiven for saying that Fine Gael did not, perhaps, present itself as an alternative Government party, because it had never been consistent, particularly in the area of economics. It therefore did not present itself as a credible alternative. Having been a Member of the Dáil as a Government backbencher I watched Members of the Opposition get great names for themselves and receive notice because they called for money to be spent in certain areas one week while pulling back the following week. There was no consistency with the result that ultimately, Fine Gael did not present itself as a credible economic party. That is the problem for that party.