Paddy Burke (Fine Gael) | Oireachtas source

Senator Norris may well laugh but why is there no development taking place? The developers and builders have lost confidence. The ones who got into trouble lost their properties and their homes. The vast majority lost everything. The vast majority of their properties are in NAMA or with vulture funds or the banks. The ones who were lucky enough to escape and who may have sites have no confidence to recommence building. I met five builders who told me that, in order for them to build, the minimum cost would be €170,000 per house. They cannot get that price. These are the sums they have done in order to go to their bank managers to make proposals. It costs €170,000 because of planning fees, architects fees, VAT and costs relating to sewerage, water, roads, footpaths, public lighting, etc. Unless builders are guaranteed they are going to get a minimum price, they will not take the gamble, even if they have sites.

The Minister is correct. We have to give confidence back to the house-building market. While there is a good market for commercial building, the vast majority of house builders and developers got burnt. They have lost confidence in building and none of them want to build. That is why we saw just 13,000 houses built last year, 6,000 of which are in rural areas. We have to give confidence to this market. I fully agree with the Minister, who said he will return to this issue on Report Stage.