asked the Minister for the Environment the present position and prospects of the building industry in (a) the private sector and (b) the public sector indicating the steps, if any, the Government has taken or propose to take to stimulate the industry.

The Government are aware of and have set about addressing, the problems of declining output and employment facing the building industry. The key issue in this regard is the general state of the economy. The measures taken in this year's budget represent a positive step towards economic recovery, lower interest rates and reduced taxation. The results to date in terms of falling interest rates, including mortgage interest and the prospect of further falls in rates, show clearly that the Government's strategy is correct and is having an impact. The crucial need is to create the conditions that will be conducive to increased private sector investment in the industry. I am satisfied that the measures already taken by the Government are the right ones in this regard. Notwithstanding the acute position of the public finances, the Government have maintained public expenditure on construction at the highest sustainable level. The reality is that the State cannot continue indefinitely to finance over 70 per cent of construction output. Public sector funding must be increasingly influenced by the state of the public finances. The industry can only prosper in line with an improvement in overall economic performance to the achievement of which the Government are committed.

Would the Minister agree, that contrary to what he says, the very steps which have been taken by the Government since coming into office, the abolishing of grants and so on, have further depressed an already depressed building industry? Would he agree that the Fianna Fáil Party before the election promised a substantial injection into the building industry and that the Fianna Fáil Party in Government have badly let down the building industry, both its entrepreneurs and workers? Would he like to comment on the oft repeated statement of the Taoiseach before the election that their mandate was to get in there and do something and get things moving, and on the fact that while they have got in there all right they have slowed things down even further and are moving nothing?

You can move a lot in a U-turn.

Backwards.

First of all, I would like to refute what Deputy Taylor has said and I would like to point out that the Government are taking the necessary steps to bring back the economy to a position where it will be able to continue to expand and our commitment is no less than what it always has been to the building industry.

Where is the £300 million you promised?

Order. A supplementary question has been asked. The House should listen to the Minister's reply.

The construction output in the commercial and retail sectors in 1987, which is a key indicator of private confidence in the building industry should record its first increase in volume since 1981 and a second significant factor is that cement sales up to the end of April are up 3 per cent on last year and they were always taken by this House as an indicator of how things were going. I am not saying for one moment that we do not have difficulties in the matter but at least the indicators now are that the economy is recovering from the mess it was left in by the previous administration.

Is the Minister aware that an international firm of accountants in a report issued since the Government came to power have calculated that by 1991 the number of unemployed will reach 300,000 if Government policies are pursued; would he agree that the Government's policies are contributing, particularly in the building sector, to continuing massive unemployment and would he inform the House of what the Government's plans are in this regard?

I have seen references in the media to the report the Deputy refers to but it would be just as well to put on record that the Government are aware of the high level of unemployment and are taking steps to do something about it; take, for instance, our recently announced economic package which included the extension of the natural gas network to serve Dundalk and the development of the Customs House Docks site as a financial services centre. I am satisfied that they will provide a welcome boost to the output and employment in the building industry and I am satisfied that that is on stream and is going to be a success. Despite the termination of the home improvement grants scheme expenditure under that scheme will rise from £27 million last year to £100 million this year. Listening to some of the Deputies, one would think there has been a terrible cutback.

Congratulations.

The Minister's Government abolished the scheme.

The point is that the scheme had got out of control but that is not to say we now have not to meet the backlog of expenditure left there as a burden for this Government.

The question was addressed to this Government, not to the previous Government.

Perhaps the Minister could reconcile for the House his reply to this question with his reply in the past few weeks to an earlier parliamentary question which stated that his Department were unable to calculate the extent to which unemployment in the construction industry would increase during this year because of the reduction in capital spending by the Government during 1987?

That is a hard one.

That was last week's one.

That was for written reply. The Minister did not have to stand up to reply.

I presume it would not be acceptable to the Deputy if I said that was a separate question. However, I shall satisfy the Deputy. Of course, the building industry needs rejuvenation.

At least the Minister has a sense of humour.

It is with that in mind that our comprehensive package is being put together, in the hope that we can get the building industry back to the position in which it was some years ago. I agree these are tough times. However, to suggest that somehow or other because we terminate the home improvement grants there will be an increase in the amount of unemployment this year is just not true.

What about local authority housing?

It is untrue for the simple reason that an increase from £7 million two years ago to £27 million last year and to £100 million this year and to a very sizeable sum of money next year is a clear indication there will be more activity in that area. Other areas have been suffering and we are trying to do something about that as well, with the gas network extension, the dock site, tourism development, infrastructural development in other areas. The Government, from a very bad base line when they took over, are at least addressing themselves to the building industry and trying to do something about it.

The Government cut the base line in half.

Will the Minister say if the present Government policy will rejuvenate the construction industry?

That is our intention.

Arising from the Minister's reply, in particular in relation to the second part of the question about the public sector and steps necessary to revive the building industry, may I ask the Minister if, in view of the severe cutback in employment in the private home building industry, he proposes to release permission for many local authority housing schemes in the current year? Will he indicate roughly how many he intends to release?

These seem to be rather special questions.

This is a different question, but to my recollection I dealt with that yesterday and the authorities will be notified in the very near future as to their total allocation. They will be notified within the next few days.

May I ask the Minister a straightforward question? Is it not a fact that the Fianna Fáil Party in their election manifesto promised £200 million of a cash injection for the building industry?

That is a fact.

That is a fact.

Will the Minister not agree that the Government have blatantly reneged on that promise to the building industry? With what does he propose to replace it, if anything?

That is a fact, too. Would the Minister not say so?

On the contrary.

Is that the rejuvenating programme?

Part of that £200 million is the very sum about which we have been talking here — the difference between the £27 million and the £100 million.

All these matters have to be taken in the context and from the level of expenditure last year in so far as construction is concerned it is the commitment of the Fianna Fáil Government to rejuvenate this industry and in my opinion £200 million would be far short of what we eventually will be putting in there.

We will stay with that at the moment.

Will the Minister start paying the £200 million?