I propose to take Questions Nos. 6 and 17 together.
I would refer Deputies to the reply to Question No. 12 answered on 12 February last which set out various measures taken by the Government to generate additional construction activity. Since then, the following measures, which are calculated to provide a major stimulus for the industry have been announced:
1. The release of approximately 26,000 applications under the House Improvement Grants Scheme from the need for prior inspection. The improvement works represented by these applications are estimated to have a value, in terms of potential construction activity, of some £100 million, involving about 6,000 man-years of work. The estimated value of the construction activity represented by all the house improvement grant applications received since the inception of the scheme is now in excess of £250 million, involving more than 10,000 man-years of work;
2. The extension of the special tax reliefs available under the inner city development programme to designated areas in Galway and Waterford. This programme is specifically designed to generate investment in new building and in reconstruction and development work.
The Government are fully conscious of the importance of the building industry. About 70 per cent of the industry's output is publicly financed and much of the remaining 30 per cent is induced by Government incentives. Public capital expenditure affecting the industry was up by 4 per cent last year and this year's provision shows a further increase of 3 per cent.
An upsurge in private sector investment remains the key to full recovery in the industry. Many of the measures taken by the Government — such as the new improvement grants scheme and the designated areas incentives — are designed to stimulate such additional investment. Taking the likely effects of these measures into account together with the favourable trends now developing in regard to inflation, interest rates and real incomes and the expansion in economic activity following this year's budget, I consider that the outlook for the industry is brighter than it has been for some time.