Cian O'Callaghan (Dublin Bay North, Social Democrats) | Oireachtas source

I will support this amendment. I agree with previous speakers that a housing mix is very positive and should be encouraged. I do not see an issue with this amendment in regard to that. This is about whether we give public subsidies to private developers in delivering affordable housing and whether it is a good way to proceed if we want affordable housing. This amendment does not preclude low-return funds and ethical investment in housing and affordable housing. Currently, low-return investment funds and ethical funds are quite successfully investing in social and affordable housing through approved housing bodies. If this amendment is passed, and followed through in the legislation, that would continue to be the practice. The question is whether or not we give public subsidies to private developers.

As regards providing affordable housing at a rate people can genuinely afford in terms of their income, rather than a percentage discount off a full market rate, we need to ask whether private developers are good at delivering that. Are private developers good at that, as opposed to private builders who can be contracted by approved housing bodies or local authorities? The evidence, certainly to date, is that they are not. They have a more costly form of delivery than approved housing bodies or local authorities.

We can see that quite clearly in the example of the Ó Cualann Cohousing Alliance and what it is building which ranges from about €160,000 to €250,000. Its houses are coming in at a significantly more affordable cost than those of private developers. It is worth noting that Ó Cualann contract private builders, but as a developer managing the project it has lower finance costs and lower risk margins. While it takes a margin, which it uses to reinvest in its next project, its overall profit margin or reinvestment take is lower than private developers. It is not just Ó Cualann. Approved housing bodies and, in general, local authorities, are more effective in terms of delivery.

There is the issue of the State balance sheet. If we are serious about what needs to be invested in affordable and social housing, the only approach that can be taken is one where we are willing to break the EU fiscal rules. This is in the context of such low interest rates, especially. Other countries have done this in the past. It is absolutely justifiable to break fiscal rules in the context of a housing and homeless crisis. I have no issue with that at all. Every party in the Oireachtas should support it. I am strongly supportive of the European Union but there are countries in the EU flouting much more serious breaches in its fiscal rules and the rule of law. There is no proper action being taken against them so we should have no fear in breaking those rules, if needs be, in addressing our housing and homeless emergency and investing in affordable and social housing.