Gay Mitchell (Dublin South Central, Fine Gael)
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Question 32: To ask the Minister for the Environment, Heritage and Local Government his view on the ESRI's latest quarterly commentary that predicts a slowdown in new home construction; and if he will make a statement on the matter. [13427/07]

Pat Rabbitte (Dublin South West, Labour)
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Question 82: To ask the Minister for the Environment, Heritage and Local Government his views on the reports of a slow down in residential construction; and if he will make a statement on the matter. [13259/07]

Noel Ahern (Dublin North West, Fianna Fail)
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I propose to take Questions Nos. 32 and 82 together.

The significance of the construction industry, including the housing sector, to the Irish economy is acknowledged. In addition, the strength of Ireland's economic performance, which most commentators consider is likely to continue, is itself a key factor underpinning the strength and stability of the housing market. Government policy is supportive of the continued stable development of the housing sector.

A key policy objective has been to achieve an appropriate level of housing supply to meet demand. The record shows that this has been achieved amidst unprecedented growth over the past ten years. Moreover, high levels of housing output in recent years must be viewed in the context of a relatively low ratio of housing stock to population compared with other EU States.

Both economic and demographic factors are likely to continue to underpin demand for housing into the future with all commentators expecting that house completions in 2007 will be lower than 2006. This would appear consistent with a view expressed by various commentators that housing output should ease to a more sustainable long-term pattern as supply and demand come into better balance. Forecasts prepared for my Department suggest that the population could increase by one million over the next 15 years. Commentators have, therefore, suggested that demand for housing may be for some 600,000 additional homes for the nine-year period up to 2015.

I would also expect that any easing in residential construction employment will be offset to a great extent by an increase in non-residential construction. This will be partly underpinned by the impressive level of financial funding available under the largest ever infrastructure investment programme in the new National Development Plan 2007–2013.

My Department will also be playing its part, and has already made a substantial commitment of over €18 billion investment, to ensure that 140,000 new households will benefit from housing programmes over the period of the NDP. This will be done in a way consistent with market conditions and having regard for the building of sustainable communities.