The construction sector will stage a recovery once stamp duty issues are resolved, the head of bathroom products manufacturer Qualceram Shires has predicted.

Speaking after the group's annual general meeting yesterday, chief executive John O'Loughlin said the slowdown in the property market was a temporary situation created by stamp duty issues.

While rising interest rates have also had an impact on the market, Mr O'Loughlin said he was confident this could be "mitigated with fiscal policy" later in the year.

"Certainly, the anecdotal evidence is that people are sitting on their hands waiting for the stamp duty [ issue] to be resolved and then first-time buyers will re-enter the market and of that, I think, everybody is confident.

"What's going to be interesting to see is what level of surge it's going to generate because we feel that there will be a surge," he added.

"We're still confident about the longer term future - all fundamentals are good in the economy and in the company."

Qualceram chairman Peter Addison said yesterday trading in the first four months of the year had been "satisfactory".

However, he admitted that sales were affected by the slowdown in the housing market and by rising interest rates in the UK and Ireland.

The group announced recently it intended to relocate its business in Arklow and sell its existing site, which has been rezoned as a waterfront development zone.

Mr Addison said yesterday that an acceptable offer had not yet been received, but the group was in discussion with a number of interested parties.