Dáil debates

Tuesday, 21 November 2006

8:00 am

Photo of Fergus O'DowdFergus O'Dowd (Louth, Fine Gael)

During Private Members' business on Wednesday, 15 November, I cited a report from the Health Service Executive concerning Bedford House nursing home in Balbriggan, County Dublin. The report stated that the registered owner of this home was a Dr. Nasser. For clarity, this doctor is registered with the Irish Medical Council as doctor No. 10840, with the full name of Dr. Khawaja Jamel Nasser.

With regard to the comments of the Minister of State at the Department of the Environment, Heritage and Local Government on housing, it has now become impossible for young people to buy homes in this city unless they are extremely wealthy. Housing estates in the adjoining counties of Louth, Meath, Kildare, Wicklow and as far afield as Wexford and Portlaoise are now occupied by Dubliners who have been driven out because they cannot afford to buy homes in their own city. Despite the success of our economy, a second Ireland has been created which consists of all who are excluded from the benefits of this new wealth.

I welcome the Labour Party motion because I have studied that party's policies and believe it is time for changes in government and housing policies. As a society, we need to provide young people with opportunities to purchase houses of their own. A challenge arises in that respect because of the increase in mortgage rates and, although house prices appear to be stabilising, a person living in Dublin would have to save €30,000 this year to keep pace with the increase in the price of a house that he or she could have bought last January. There is no way out for these people and it is a mark of social exclusion that they are not allowed to participate in the success of the economy. Government policies have not been successful in terms of intervening in the market to ensure sufficient units of affordable housing. Fine Gael has brought proposals of its own on this issue, some of which are already in the public domain and which contain many of the proposals set out in tonight's motion.

The Progressive Democrats Party, eager for a bit of media attention before its day out in Malahide, has flown a kite about the abolition — not just the reform — of stamp duty. In response, a grumpy Minister for Finance makes it clear that nothing will be done. The confusion leaves young couples scratching their heads at how little the Government has done for them in terms of housing, while the auction market grinds to a standstill in anticipation of what, if anything, will be done on budget day. The Government is characterised by two extremes. On the one hand, the Progressive Democrats Party recklessly wants to get rid of stamp duty and, on the other, Fianna Fáil believes there is no need for reform. The Irish public, particularly those seeking to get on or move up the ladder, are not served by such a scenario.

Fine Gael will support this motion. I am particularly gratified to see reference in the motion to Part V of the Planning and Development Act 2000. It is abundantly clear that Part V, which was designed to provide social and affordable housing units and ensure social integration, is not working. When first proposed, the idea was considered a revolutionary attempt to end the ghettoisation of social and affordable housing by bringing more units on stream. That has not happened because local authorities interpret Part V differently, developers appear unwilling to meet their commitments and the units are not being delivered. Cash sums are often provided instead of land or actual homes. It is time to end the practice of allowing local authorities to accept cash payments in lieu of land or housing units. We will take this matter in hand by insisting that 20% of all new developments comprising five or more units are allocated for social and affordable purposes. No local authority will be permitted to accept cash payment in lieu of housing units. Where the private development is situated in an area with already high levels of social housing, it should be possible for the developer to provide 20% of the land for the construction by the developer of social and community facilities, such as sports complexes, swimming pools and educational facilities. This will help to maintain and improve social cohesion by encouraging a greater mix of private housing within a predominantly social housing area and the entire community can benefit from improved facilities.

I offer my full backing to the argument made in the motion that building must be commenced on land zoned for residential use. According to the economist, Mr. Jerome Casey, site costs constitute 42.5% of the cost of the average house, rising to 50% in Dublin. His conclusion is that eight years in the normal life of a 25-year mortgage goes on site costs. Mr. Casey also estimates that 25 individuals or companies control more than half the housing development land in the Fingal area, which includes Balbriggan, Donabate and Blanchardstown.

Figures from the Department of the Environment, Heritage and Local Government indicate there was enough zoned land in Dublin city and county in mid-2004 to produce 112,000 housing units. Nationally, there were 12,500 hectares of zoned serviced land with an estimated yield of 367,000 units, which equates to sufficient capacity for residential development nationwide for over five years. Despite this, demand has not been met, land prices have continued to soar and many remain unable to step on to the property ladder. Fine Gael is determined to ensure that the zoning process is made to work for rather than against the creation of sustainable communities and a healthy balance of private, affordable and social housing, together with the necessary amenities.

Local authorities should issue compulsory purchase orders where land zoned and serviced for housing is not being developed in a timely fashion. This land should be acquired at below market rates. The clear message to anyone hoarding land will be "use it or lose it".

I also support the point made in the motion on the use of State land. Housing cannot be provided if there is insufficient land available for building purposes. In light of gross mismanagement of the public finances, it is unfortunate that Departments and State agencies increasingly see private land banks as revenue streams rather than potential sites for new and desperately needed housing. Recently, mental health facilities, prisons and the SDS site in south Dublin have been earmarked for sale. Instead of this disjointed, piecemeal approach, Fine Gael proposes to implement a coherent land disposal policy.

We will instruct the homeless agency, in tandem with the Office of Public Works, to conduct a full audit of State-owned land with a view to identifying whether it is necessary to the further development of the Department or agency. If not, and if it is suitable for housing development, it will be developed by the State for a mix of social, affordable and private housing or through public private partnerships. We will end the practice of selling valuable State lands to pay for capital investment in hospitals, the Defence Forces etc. That is the reason we pay our taxes. Any development will also provide for retail, leisure and community facilities on site, both as amenities for the new housing and to benefit existing communities.

I am happy to endorse the call to end homelessness by 2010, made recently by the housing charities that joined together for the Make Room campaign. There are 5,581 homeless people in Ireland, living in 3,773 units. In Dublin, 4,060 people are homeless and they include 1,140 children. That is enough to fill the Point Depot. The Simon Community claims the figures are a "gross underestimation".

There are 492 homeless children in Ireland, the majority of whom are in their mid to late teens. However, according to figures compiled by the Health Service Executive and the Department of Health and Children, 22 homeless children are under the age of 12. The overall number of homeless children grew from 476 in 2003 to 492 in 2004. The highest numbers of homeless children were recorded in urban areas. There were 210 in greater Dublin, followed by 132 in the south, 46 in the west and 43 in the mid-west. The lowest figures were in the north west, where five children were found to be homeless.

It is intolerable that, after a decade of prosperity, we still live in a society where homelessness is a daily fact of life for so many. All of us, in government and opposition alike, must work towards eliminating homelessness once and for all. To do so, I am convinced that the State must invest heavily in move-on accommodation. Such housing is designed to assist homeless people move out of homelessness and to ensure vulnerable people do not become homeless. In essence, it provides a semi-sheltered environment for those who cannot cope with independent living.

It goes without saying that the Government's shameful failure to deliver on the social housing units it has repeatedly promised is adding to the problem. It is vital that the root causes of homelessness, such as poverty and the twin scourges of drug abuse and alcohol dependency, are tackled. These problems are not limited to Dublin. Recent evidence from the Combat Poverty Agency shows that poverty is not limited to our major urban centres. While this summer's announcement of funding for the regional drugs task forces is welcome, it comes after years of an absence of funding. The Government is only now addressing that.

The rent allowance scheme is not working, certainly not in my town. The cap on the amount a local authority is allowed to pay for rent is too low and landlords will not agree to it. Initially a number of landlords signed up to the scheme but it is now practically impossible to get them to do so. While the principle behind the scheme is good, it is not working. Last year, €16 million allocated for the scheme around the country went unspent. The Government was not able to give it to local authorities to allow people to have decent rented accommodation. That is a serious failure.

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