Oireachtas Joint and Select Committees

Wednesday, 23 June 2021

Joint Oireachtas Committee on Jobs, Enterprise and Innovation

Reactivation of Economy Following Pandemic Restrictions: Discussion (Resumed)

Photo of Matt ShanahanMatt Shanahan (Waterford, Independent) | Oireachtas source

I have a general question for the local authority managers in respect of the escalation in build costs and the affordability of housing development. It is somewhat similar to a question asked by Senator Ahearn. Are local authorities again considering trying to keep some type of in-house build team rather than just project management? I refer to the retention of skills in terms of tradespeople. I have been speaking to several developers and smaller builders in recent months. It is becoming quite apparent that the current costs in the building sector are very unlikely to unwind because of planning regulations and specifications. It is going to make housing unaffordable, particularly outside Dublin. As I stated previously, in Waterford we do not have high-quality jobs like those available in Dublin and affordability is already a very significant issue despite the fact that the housing market has moved on. Affordability is the central problem. We are trying to get houses built under the affordability scheme. A significant amount of social housing is being planned but not a lot of private housing is being done, apart from one-off builds. What can local authorities do to ensure they have capacity in that regard? We are hearing that local authorities should be building. We know there is no capacity within local authorities currently to take on build projects.

It is all done by tender through third parties. Secondly, if we have an affordability problem, will we be building houses in the future under the local authority or is everything going to turn into tower blocks? Is that where the national development plan is going to end up?

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