Martin Ferris (Kerry North, Sinn Fein)
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Question 156: To ask the Minister for Finance his views on the fact that the construction sector accounts for 23% of the State's GDP compared to the EU average of approximately 12%. [33231/06]

Arthur Morgan (Louth, Sinn Fein)
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Question 164: To ask the Minister for Finance his views on concerns raised by the ESRI in its Quarterly Economic Commentary Summer 2006 regarding the reliance of the economy on the construction sector. [33229/06]

Brian Cowen (Laois-Offaly, Fianna Fail)
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I propose to take Questions Nos. 156 and 164 together.

The construction sector has performed very strongly over recent years, particularly as regards housing. Housing supply has been increasing in response to high levels of demand, which, in turn, have been underpinned to a considerable extent by a range of fundamental demographic and economic factors. Total housing output reached an all-time high of about 86 thousand last year, according to the CSO. The construction sector now accounts for about 13 per cent of total employment and 20 per cent of GDP.

I am aware of the comments and concerns contained in the ESRI's Quarterly Economic Commentary, Summer 2006. In this context I wish to restate what I have already said on a number of previous occasions and acknowledged in the Stability Programme Update published with the 2006 Budget: the fact that construction accounts for an historically high proportion of economic output and employment implies that the economy is vulnerable to any shock affecting this sector.