Seán Crowe (Dublin South West, Sinn Fein)

This country is facing a number of crises. We have all realised that a crisis exists in the health services, and a drug epidemic is sweeping the country, especially in terms of cocaine. Figures revealed in the Permanent TSB-ESRI house price index confirm what everybody but the Government believes, namely, a housing crisis has also arisen. House prices have risen by an explosive 270% over the past decade. It must be asked whether the wages of working men and women have increased accordingly. I do not think they have.

The review also revealed that house prices in Dublin are a massive €130,000 more expensive than the rest of the State. In 1996, the difference was €10,000. When I got married 20 years ago, I could not afford a house in Rathfarnham where I grew up, so my wife and I had to move to Tallaght. Now, however, young people from Tallaght have to move as far away as Portlaoise to afford a house. Many of the young people I know must live at home until their late 20s or even 30s. Generations are living in the same house.

The Government emphasises shared ownership and affordable housing, options which are welcome for many people. However, people on social welfare or low incomes do not have the option of buying their homes. The roll-out of affordable housing is not much use to lone parents or part-time workers.

Nine years ago, the Government woke up to the fact that housing problems existed and commissioned Mr. Peter Bacon to compile a series of reports. Mr. Bacon made a number of recommendations but these seemed to have fallen on deaf ears. Investors get mortgage relief on second houses at a cost of €60 million per year to the taxpayer. When this relief was abolished in 2001, the housing market improved. However, despite the recommendation in the Bacon report that the relief be removed for good, it was reimposed by the former Minister for Finance, Charlie McCreevy. The National Economic and Social Council also recommended the removal of the relief because it drives up the price of houses for local people. The Government's priority should be on homes for people, not on holiday homes.

Some 44,000 people are on waiting lists for social housing. Sinn Féin has campaigned for the introduction of a constitutional right to a roof over people's heads. In one of the wealthiest countries in the world, it should not be seen as a privilege to have a home.

A global housing survey indicated that Irish house prices are unsustainable. While the cost of land is on average 20% of the total cost of house construction in industrial countries, it is 50% in Ireland. The contentious Part V of the Planning and Development Act 2000 stipulates that 20% of residential development sites must be used for social and affordable housing, but many builders pay money instead of delivering housing units. The Building Industry Bulletin of 2002 found that the profit on building land in Ireland was 300% above average profits. The Kenny report recommended a ceiling on the price of land of the existing value of agricultural land plus 25%. Again, however, no action was taken by the Government. Many young people in Ireland face difficulties, yet the Government does not seem to realise that a crisis exists.

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