Barry Cowen (Offaly, Fianna Fail) | Oireachtas source

Deputy Richard Boyd Barrett stated the obvious. We are all too well aware of the problem. Unfortunately, it has been the case for too long and is impacting on people in a detrimental fashion, in that property and rental prices are too high. Increased supply is the answer. Other efforts are being made to address that issue, but LIHAF has been referenced. It is commendable but slow. The local authority house building programme's targets are commendable but slow. We can argue who is at fault and while it is wrong to get into the blame game, local authorities do not have the discretion they require to do the job we expect them to do. It is time the Government considered increasing their discretion by a multiple of the current amount of €2 million. The Department could perform regular audits thereafter to ensure the local authorities were in line with the various expectations, regulations and rules for the procurement of public finance. That would give greater ownership to local authorities and their members and allow them to play the part they played historically and want to play again to address this issue. We have been making this suggestion for a long time.

The affordable schemes the Government is seeking from local authorities are commendable, but, once again, they are taking too long. In terms of the current call, there is no obligation on local authorities to meet it until next June. It will not result in a property until two years later.

We are still in the midst of a pilot cost-rental scheme. It is a fine idea and there was much merit associated with it initially. It is commendable but too slow. It is a facet of the Government's handling of the issue. There is a lack of urgency and determination to get to the root of it. We are at a juncture where we have to see real and concrete measures that can have the impact other efforts failed to have. Many will have an impact in time but, as the Minister of State has acknowledged, they will have an impact without the immediacy that is required. I called for this last year and the year before. It was announced in last year's budget but it is not yet on the ground, which highlights the lack of urgency that is necessary to make this available. I make no apologies for saying this is necessary. There are builders out there, big and small, who cannot get access to finance and if they cannot get access to finance they cannot put homes on the ground. If we cannot put homes on the ground, property prices and rental prices will stay high. For some here, it allows them the opportunity to continue to have a drum to beat. Until the Government wakes up to that reality they will still be beating that drum and unfortunately nobody will get a resolution. There is much merit in the amendment. It is the blueprint for what should be the case with all building by local authorities, social housing agencies, the State and private developers in the next two years if not beyond. It means that 10% should be social, 30% should be affordable and the remainder can be private. That would meet with universal approval in the committee and the Dáil. If that was the case for the next two years perhaps the people would see there is a unified attempt to bring about a successful resolution to the issue.

I would add to that the credit unions which are an integral part of many communities across the country. They are under great strain as a result of Central Bank restrictions on their activities in the financial services sector. It impinges on their ability to make profits which impinges on their ability to provide the sort of support they have provided historically and which they can and want to provide in their communities in the future. They could contribute based on the amount of funding they have available, which is up to €8 billion. As a result of the present restrictive rules on their ability to play a role, they are confined to propping up the pillar banks, the same pillar banks who will not lend to the sector. The Government must allow them to invest in such a vehicle, which in turn can reap rewards for their communities. It could offer the opportunity of a revenue stream so the credit unions can continue to play a part in their communities when others in their communities are being lost as a result of advances in technology and other things. It will affect the ability of those communities to thrive into the future. There is a win-win aspect to much of this and we should not be playing the political game of who is associated with the success. Everybody is to blame for the failure so everybody can play a part in a successful conclusion despite the unfortunate delays which have happened despite everybody's best will.

There is much merit in the proposal. I echo the comments of Deputy Ó Broin imploring the Minister of State to consider this before Report Stage and to allow it to be a blueprint for development finance. The State has to intervene as a result of the lack of affordable and competitive finance being made available to the sector, big and small. Every time one talks about builders and developers, one talks about big developers. There are many small builders around the country with a lot of people on their books who are prepared to work especially in their own communities and regions. Carpenters, bricklayers, labourers and electricians are part of the service too. They are part of the sector. They have families and they have an entitlement to play their parts in ensuring their families have an opportunity to remain in their own communities.