Dr. Larry O'Connell:

I thank the Chairman and members of the committee for the invitation to speak on the National Economic and Social Council's work on affordable housing. Mr. Noel Cahill and I are members of the secretariat of NESC and are attending in that capacity. If it is okay I will take the role of NESC as read as it is in our opening statement. The first part of my statement will focus on NESC's role in housing.

NESC has produced eight reports on housing since 2004. Aspects of housing affordability have featured in every one of those reports. In our most recent report, Housing Policy: Actions to Deliver Change, NESC restated its consistent and long-standing position on housing and land-use policy, namely, that Ireland must bring about a fundamental change in its system of urban development, land management and housing provision. It must evolve from a speculative and highly cyclical system to a permanently affordable, stable and more sustainable system of housing. Pursuing that objective, our most recent report focused on two related issues, the supply gap and the affordability gap. The report detailed the steps NESC considered necessary to bridge the two gaps by way of institutional adjustments, more effective use of existing policy and innovation to enhance the policy options available to the State.

With the Chairman's permission, I will ask Mr. Noel Cahill, who has worked on this area, to walk the committee through the three different aspects of that report and attempt to focus on the emphasis on cost rental in NESC's work.