Dáil debates

Tuesday, 21 November 2006

7:00 am

Photo of Willie PenroseWillie Penrose (Westmeath, Labour)

I welcome the opportunity to support this extremely important motion, which has been put forward, on behalf of the Labour Party, by Deputy Gilmore. I am glad that in the 1960s my parents were able to secure a county council house. They found themselves in a position to move out of inadequate accommodation into what then was adequate accommodation provided by a local authority. In that context, it is difficult to imagine that, despite our current affluence and international economic success, we are failing our children. When, 40 to 45 years ago, this country had nothing and exported its best product, namely, its people, it could still manage to provide homes for those who were left behind. During the period to which I refer, many of my uncles left Ireland and never returned. The legacy of Fianna Fáil in power was that they got a one-way ticket.

Ireland's national housing policy is clearly in need of radical change. We do not need a continuation of the laissez faire attitude that permeates the Government, which is ideologically driven by a right-of-centre party. Fianna Fáil appears to have abandoned one of its traditional values, namely, that families should be provided with decent homes, as mine was in the 1960s. The Government amendment to the motion highlights the bankruptcy of the Government's commitment — if the latter ever needed to be illustrated to — people who do not own properties and who will never do so. I refer here to young men and women who do not own their own dwellings and who have no prospect of doing so under this uncaring, selfish Administration which has zero commitment to them.

The Government only becomes concerned when it comes to a choice between looking after the interests of developers and catering for those who are on housing lists and who live in substandard rented accommodation. In such circumstances, there can be only one winner. Fianna Fáil and the Progressive Democrats look into the hospitality tent and see who contributes most. Those unfortunate people who are obliged to pay rent are not able to contribute to any big ruaille buaille in Galway or anywhere else. The individuals to whom I refer are barely able to make ends meet and pay their bills. They have recently been obliged to cope with huge increases in ESB and gas prices, a development which will ensure that the standard of living decreases even further under this uncaring Government.

Let us consider what Sister Stanislaus said about this matter. I always like to take on board what people on the outside state because people say that we are politically motivated. Sister Stanislaus is not politically motivated; she has given her life to promoting the need to provide people with housing of a decent standard. Approximately eight or nine months ago, she stated that the Government has abandoned its historical policy of providing social housing for people who cannot afford to buy their own homes. Basically, she informed this Administration that it has abysmally failed the people for whom it should have catered.

Deputy Gilmore is correct in stating that the Minister of State will indicate that over the past ten years 500,000 new homes — approximately one third of the country's entire housing stock — have been built. However, house prices in Mullingar have more than trebled and they have quadrupled in Dublin. I am sure the latter is the position in Cork and other cities. Houses are being built but the people who need them cannot buy them because they cannot afford to do so. Why is that the case? It is because the Government has ensured that people can buy three, four, five or six houses, thereby becoming the sort of landlords of whom Michael Davitt tried to rid the country. Approximately €400 million is paid out each year in rent supplements. This money is paid by the relevant arm of the Government to the people to whom I refer in order that they can buy their third, fourth or fifth houses. It is a beautiful merry-go-round, with everybody in the circle. As Robert De Niro stated in a recent film, once a person steps out of the "circle of trust", they cannot step back in again. The unfortunate people who cannot step back into the circle are those who cannot afford to buy or build houses, those who cannot purchase sites for houses and those who are homeless.

Is there no longer such a thing as a social conscience? Is it not time to tell the speculators and those who display a grab-all mentality that they have benefited enough? The Government reduced capital gains tax from 40% to 20% in order that these people would free up land to ensure that housing would be available to those who need it most. What did they do? They took advantage of the 20% reduction and pocketed the money. As the Minister of State, Deputy Noel Ahern, indicated previously, we were obliged to get rid of the first-time buyers grant because developers were also pocketing that money. Do developers have no shame? The more incentives they receive — the Minister of State is very good at ensuring they get them — the more money they will pocket. The longer the Government remains in power, the wealthier these people will become because no one will tackle them.

I have some experience in the area of rent allowance. When she served as Minister for Social and Family Affairs, Deputy Coughlan exacerbated the situation in this area despite warnings I issued to her when we debated particular legislation. There are 60,000 tenants in private rented accommodation who are subjected to means tests. The system relating to the rent supplement allowance is administered by community welfare officers. The vast majority are social welfare recipients but there are some people on low incomes who should also be able to avail of the allowance. The then Minister, Deputy Coughlan, made the situation worse by introducing a provision which means that a person who is employed for 30 hours per week cannot qualify for rent supplement. Even if one member of a couple works 30 hours per week and the overall household income is low, payment cannot be made. It is time to get rid of what is clearly a poverty trap that was introduced by the then Minister, Deputy Coughlan, despite our warnings with regard to what would happen.

Earlier today, the Multiple Sclerosis Society of Ireland made a presentation to the Joint Committee on Social and Family Affairs of which I am Chairman. Its representatives stated that the disabled person's housing grant provides essential financial support to people who are obliged to adapt their homes to increase their mobility. Will the Minister of State increase the grant and ensure that the full amount is given to local authorities? Many of the latter do not possess the one third funding necessary to allow them to engage in co-financing.

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