Fiona O'Malley (Dún Laoghaire, Progressive Democrats)

Regarding our primary objective to ensure that supply is being responded to, it is clear our policies are working. As a result of the work we are doing, house prices have moderated somewhat but not enough and the problems remain.

I would like to dwell on two areas of concern. The first is the problem of investment properties. Our policies have delivered homes but the increased number of houses are meant to help people like the young man in Leitrim on €27,000 a year. I am concerned about a recent ESRI study which estimated that 12% of the 77,000 dwellings built in 2004 are either holiday homes or are empty. That must be addressed.

The second issue I would like to dwell on is the State provision of affordable housing. It is obvious that increased supply will temper the price rises and help certain sections of society but they will not help everybody. There are those whose annual income is nowhere near the €27,000 per annum of the individual I spoke of earlier.

We spent €144 million on affordable housing in 2000. We spent €266 million last year and while we must continue with our policies to increase housing output, we must also increase the amount the State spends on providing housing. The level of social housing being provided is the highest ever in our generation but it must be kept going at that level. It is envisaged that 12,000 more affordable homes will be completed by 2007, and they must be completed.

I wish to refer briefly to a topic raised when discussing affordable housing for young people, the so-called first-time buyer's grant. That is a misleading title. When I was a first-time buyer, I did not qualify for the grant as the house I purchased was not new. The notion that the grant was what it said on the tin is ridiculous. Another myth which needs to be dispelled is the one which contends that we have presided idly over the economy while allowing the housing problem get out of control. Almost 30% of all homes in Ireland have been built since 1997. A clear strategy has been devised to tackle homelessness. As long as there is one homeless person, there will be one too many.

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