Building group McInerney Holdings has voiced concerns about the Government's plans to require developers to sell 20 per cent of new sites to local authorities for social housing. Addressing shareholders at its annual general meeting in Dublin yesterday, chairman Mr Roy Ferris, said the proposal was effectively an additional tax on first-time buyers and its implementation would lead to a further rise in house prices.

"A more direct way for the Government to help to improve the tight housing situation is through improvement of the planning process. The process of obtaining detailed planning permissions is too often taking much longer than it should due to pressure of workloads and inadequate staff numbers in planning departments" he said.

The group is predicting another strong performance in line with buoyant economic conditions.

The outlook for its leisure operations in Spain remains positive and it plans to develop further freehold opportunities in this market. The company also continues to review the UK market and will expand its activities there if the right opportunities arise, according to Mr Ferris.