Michael McGrath (Cork South Central, Fianna Fail) | Oireachtas source

If I can I add a point, the Deputy makes a fair point about the reality that in parts of the country, the cost of building a new home is such that the price that would have to be charged is more than the market in that area is able to support. That is a challenge. The question is how do we calibrate the supports introduced by the Minister, Deputy O'Brien, funded by the Minister, Deputy Donohoe, to help to bridge that gap and overcome the challenge. It involves the different inputs when it comes to building new homes. Have we enough zoned land and is it serviced? Can we continue to support the work of Uisce Éireann in terms of their multi-annual capital plan in order that water and wastewater services are provided for land?

Funding costs have been a real challenge in recent times, particularly given the interest rate cycle and the monetary policy decisions. The indications are that this may begin to change over the period ahead, which will help. We have come through a period of exceptional construction materials inflation, as the Deputy knows, and it has made that viability challenge outside the main urban centres all the more acute. That is why the schemes and the supports we have are more important than ever.

Labour is an important input. We are making real progress on apprenticeships and the numbers are growing very considerably. That is also an important factor and another is the reform of the planning system. Schemes in many parts of the country that are currently stuck with An Bord Pleanála are beginning to come through. While that does not in and of itself resolve the viability challenge, some of the schemes are viable but are stuck in the system. We have provided significant additional resources to the board and we are seeing now the flow through of more planning appeal decisions, which will certainly help.

While all of those inputs are important, the Deputy has highlighted a key issue. The cost of building is high and there is a viability gap in parts of the country. We have to continue to see what we can do to bridge that viability gap. While we are helping the purchasers through the interventions in place, we want to see greater private supply. We are doing a lot on social housing and will continue by doing more. We see affordable housing beginning to come through in significant numbers but we need private supply, that is, homes for sale in the private market to buyers without intervention and without support. That is an area where we have to continue to consider what more we can do to make developments viable.