John Cummins (Fine Gael) | Oireachtas source

Mr. Quinlan is correct in his response.

The intention is that the cost rental model would be part of wider social housing development. We cannot forget that the goal should always be to have mixed tenure. We saw the problems which existed in the past when we focused on one type of tenure. Let us not forget private development in that context. The mantra that seems to be put forward all the time now is that the approach taken must be the construction of social and affordable houses. Private housing is also an essential part of the mix, however. This endeavour cannot just have two elements in operation. We should try to ensure in everything we do in the area of development that we have social, affordable and private housing. I do not buy into the narrative being painted by some people that development must be focused on just two of those three aspects.

In that regard, there are areas in the country, especially in my constituency of Waterford, where the collapse in the housing market meant we only had social housing developments, because that was the only housing being built in recent years. We have excellent infrastructure, such as roads, schools and libraries, but we just have social housing. Private housing has not followed. I see the affordable housing product as a way of stimulating private development and ensuring we have a mix of those three strands in areas.

If we are in search of such a circumstance where ownership is in the hands of private owners, how do we stimulate that aspect, aside from the equity side of things? Will the county councils be able to work with private developers to ensure we get mixed and varied developments? I am also acutely conscious of those areas of the country where the local authorities do not have land banks. How do we address that situation?

The cost rental model has got a good bit of airing from Mr. Nicholson, and he has explained it quite a lot in respect of the goal of getting to the pension funds and expanding these schemes. We cannot scale up this scheme and the product solely on balance sheet through the AHBs. We are trying to prove the model, as has been said, but the only way we can really get scale in this regard - and it can be achieved quickly - is via attracting finance through pension funds examining a 40-year term of investment and in turn giving people security of tenure for 40 years. This approach can and will work in Ireland, but we must look at loosening the rules in this context and our sole focus on the AHBs, although I appreciate that we are first trying to prove the model.