Emmet Stagg (Kildare North, Labour)

I want to declare, on behalf of the Labour Party, the right to a home, to a roof over one's head, for every citizen of this Republic and the right to a roof that does not pauperise the family or the individual. Our current system has failed to deliver this. A total of 60,000 families or approximately 180,000 men, women and children are in short-term, private rented accommodation they cannot afford and their landlords are paid €400 million per annum to subsidise their rents. This means that 4.5% of the population are condemned to permanent poverty by the rent supplement scheme.

What is the scale and depth of the poverty I am talking about? Let us take the example of a couple with one child. They must be on social welfare benefit to qualify for the supplement, which is €292 per week. They must pay €13 in rent, which leaves them with €279, out of which they must pay for all housing overheads, including electricity, gas, clothes, school books, transport and food. That is without accounting for the usual top-up. If they get an extra €1, their rent allowance is reduced accordingly. These families are forced to remain idle and cannot engage in any economic activity. If they do so, they will be punished. They are in very insecure housing and a month's notice at any time puts them on the street. They live in dire poverty and are harassed by social welfare officers to accept low-paid employment that would put them on the street in any event.

Our proposal would create a buffer or breathing space in the transition from enforced idleness to productive employment — productive for the family and for society. It should be noted by the Minister of State that he and his Government pay more in rent subsidies to landlords than they pay in income support to families and that must change. However, the Labour Party is not saying this is a final solution for the families in this housing poverty trap. The real and lasting solution is the provision of sufficient homes for rent and purchase at prices that the 60,000 families on rent subsidy can afford. This will require the acquisition of land — I refer the Minister of State to the Kenny report in that regard — and the building of large numbers of units of social and affordable housing by the State or its agents. A total of 60,000 homes are required in these categories.

The vain hope that these homes would be provided by the private sector through the Part V process was dashed when the Government cut the heart out of the Planning and Development Act introduced by the former Minister for the Environment and Local Government, Deputy Noel Dempsey, and accepted cash rather houses from the builders. The effect of this little manoeuvre is well demonstrated in County Kildare. In 2004 and 2005, 7,000 houses were built in that county. Under the scheme laid out by Deputy Noel Dempsey, the county council would have received 1,400 housing units. However, under the new Part V scheme, Kildare County Council received 12 social and two affordable houses out of a total of 7,000. There are a lot of very happy and very rich builders in County Kildare as a result but the housing waiting list grows by the day. This demonstrates the Government's priorities.

Let us look at the price of houses and consider why they are so high in comparison with the price of production. The average price has increased by a factor of more than three since 1997, as Deputy Gilmore outlined last night. We hear much from this Government and others on the benefit of the free market and competition. They have not worked well in the housing market. As a result of direct action by the Government, investors buy half of all the new houses built. They do so because the Government gives them double tax breaks, first on the mortgage and then by giving guaranteed rental income from the taxpayer's pocket. Young couples cannot compete in this lopsided market. No large tax breaks exist for first-time buyers and this shows where the Government's priorities lie.

It is a scandal in this rich country that 4.5% of the population is forced into poverty because their Government has failed to provide housing for them. There is no easy solution and we do not say there is. One may tinker around the edges with Part V or rental accommodation and other useless novelties but the only long-term solution for the 60,000 families on rent subsidy is to build houses for them. Our proposal will ease the pain and poverty in the meantime.

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