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EY is able to recoup the money through its payroll, so it is effectively an advance on wages.

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Starting salaries for new graduates, who train with the firm, range from €24,000 to €31,000.

The loans scheme reflects the difficulties in the housing market and can be drawn down if needed, Mr Mc Kerr said.

It is a function of a rapidly growing economy and the fact that Ireland has strong demographics," he told RTÉ Radio One's 'This Week'.

"I think what the Am Cham are doing in their report is pointing to the future demand.

The move is a clear signal that the housing crisis is now seriously threatening to choke economic development.