Pádraic McCormack (Galway West, Fine Gael)

I did not interrupt the Minister of State and I ask him not to get excited. If the local authorities are receiving money or land in lieu, how is it that only 1.4% of completed units are for social and affordable housing?

It is obvious that while there is private success, there is gross public failure. This Bill would go some way towards correcting that failure. Developers, because of the nature of their business, are in regular contact with personnel in planning offices. Developers and their professional advisers are shrewd people and are working to high stakes in this business. They are sometimes able to enter into arrangements with the planning office to enable them — legitimately, under the 2002 Act — to avoid having to set aside 20% of their developments for social and affordable housing, as provided for in the Government's original legislation. This Bill simply seeks to have the Government restore the 2000 Act as it was originally introduced.

Builders realise that giving over 20% of units in a development in a highly sought after area to social and affordable housing will reduce the price they will get for the other units. The result of the opt-out clause in the 2002 Act is that house prices are kept artificially high by buyers, who wish to live where there is no social and affordable housing. This clause also defeats the Government's stated objective of facilitating a social mix in communities. It continues to be the case that social and affording houses are built only in certain areas.

See this speech in context