Terence Flanagan (Dublin North East, Fine Gael)

I thank the Labour Party and Sinn Féin, in particular Deputy Ciarán Lynch, for tabling this excellent motion, which Fine Gael will be supporting.

We have a housing crisis, for which this Fianna Fáil-led Government has a lot to answer. Failure is the hallmark of this Government's housing policy. Currently, more than 56,000 people are on social housing lists. This is a shockingly high figure which highlights the Government's failure to deliver to those people who find themselves in need of a home. The Fianna Fáil-led Government had ample time and resources to house these people during the housing boom but turned a blind eye to them. These massive waiting lists are a direct consequence of this inaction. I am concerned that the numbers will continue to rise in the current economic climate, in particular when more homes than ever are being repossessed.

What is even more alarming is that the latest figures, published in July 2008, indicate that more than 5,000 local authority houses remain empty. This is at a time when huge numbers of people are on waiting lists. The Minister needs to be held accountable for his failure to turnaround properties in a quick manner. In my constituency of Dublin North-East more than 80 properties are boarded up. A resident has informed me that the house next-door to her in Darndale has been boarded up for the past year and a half. Why has this been allowed to happen at a time when people are crying out for housing? I call again on the Dublin City Council manager to ensure that boarded up houses are turned around within strict timelines.

The comment by the Minister of State, Deputy Finneran, to RTE that he thinks 9,000 houses will be delivered this year, is not good enough, in particular given the growing housing lists. I call on the Minister to provide 15,000 extra houses annually to reduce these housing lists. Questions need to be posed as to why the Minister is handing over money to local authorities without ensuring regular checks in respect of performance delivery. At the very least, there should be strict targets set to which local authorities should step up and achieve.

The Government previously gave a commitment to end long-term homelessness by 2010. Homelessness remains a major problem in society. According to recent figures the number of homeless people nationally is 3,013. However, this is not a true figure as it does not take into account the invisible homeless. I remain unconvinced that this Government will deliver on its promise to end homelessness. In July of this year, for instance, the HSE imposed a funding freeze on services in respect of homelessness resulting in people being turned away from emergency accommodation.

The Government has failed to deliver on regeneration schemes for Dublin. Last week, the assigned property developer pulled out of the Croke Villas public private partnership, PPP, which was to build 30 much needed social housing units. Already this year property developer Bernard McNamara walked away from five public private partnership projects leaving residents devastated. The council lost €5 million in the process and is now seeking to go ahead with only three of these five projects. To add insult to injury, residents will be left in limbo until 2010 or 2011 when these projects are supposed to commence. This is a serious blow to the residents concerned. As I stated earlier, waiting lists are at a record high of 56,000 and will continue to increase in the current economic crisis. It is the less well-off in society who are always the first to suffer in this situation. The vulnerable are the ones, unfortunately, who are hit.

The Government has failed to deliver on its affordable housing targets. Under the programme for Government and the national development plan, 17,000 affordable units were to be delivered between 2007 and 2009. In 2007, only 3,500 units were delivered. In the first three months of 2008, only 976 houses were delivered. Today, there are 6,500 people on Dublin City Council's affordable housing list and there are 732 people on Fingal County Council's housing list. The Minister of State will be aware that a problem arises in respect of affordable houses, the cost of which are that of current market value, as a result of which people are refusing to accept them.

Budget 2009 introduced schemes to assist first-time buyers. Two schemes were announced, namely, the Government equity scheme and the home choice loan scheme. The Government equity scheme provides for the Government acquiring a stake in a property based on market value, the equity stake being between 25% and 30% leaving the buyer highly vulnerable if market prices increase when the house is being sold. This scheme, which is to replace the affordable housing scheme, is flawed.

The Government's new home choice loan scheme will provide up to 92% of the market value of a new property purchased by first-time buyers unable to obtain a loan from banks. This scheme encourages people to borrow up to seven times the value of their salary, leaving them open to becoming trapped in bad debts and negative equity. Fine Gael has reservations about the Government's home choice loan scheme which amounts to a bail-out of developers and could lure first-time buyers into negative equity as house prices continue to fall. With house prices continually falling month by month, the Government's latest intervention in the property market could trap first-time buyers in negative equity and, eventually, bad debt.

While we welcome any initiatives to assist first-time buyers this scheme would be better if provided when house prices stabilise. The fact that it only applies in respect of new properties is a nod from the Minister for Finance to his friends in the construction industry. If he truly had the interests of first-time buyers in mind, the scheme would be open to all properties. The Government must return to the drawing board and design suitable, affordable housing schemes which favour buyers and not developers and the Government coffers. The Government has failed to protect homeowners from sub-prime lenders. In 2008, there was a surge in the number of repossession orders granted in the High Court. In the current economic climate the threat of repossession is real and worrying for many persons with mortgages. On 6 October seven of the nine repossession orders granted were sought by the sub-prime lender, Start Mortgages. Between January and June this year 126 repossession orders were granted in the High Court and 81 in the Circuit Court. Last year 465 repossession summonses were issued in the High Court compared to 311 in 2006. It is clear, therefore, that the number of repossessions is on the increase and it is expected more repossession orders will flood the courts in January. It is estimated that 15,000 people have taken out sub-prime mortgages in the past five years, yet the Government has done nothing to protect people from sub-prime lenders. It was able to bail out the banks and developers but has ignored the ordinary mortgage payer. For months sub-prime lenders have had a free-for-all and dragged people with mortgages into the courts while the regulator looked on.

In January this year I called on the regulator to draft new industry guidelines on reckless mortgage lending and to create new penalties for mortgage professionals found guilty of reckless lending and deception. I also asked for a report to be compiled on lending practices engaged in by the mortgage industry in order that those which undermined consumers' rights cjould be identified and eliminated through better regulation. Sadly, that call was ignored and we are seeing the results of the regulator's inaction. He should be asked why he did not act. Last week in the Dáil the Taoiseach stated he would instruct the Minister of State with responsibility for housing to consult the regulator on the matter. It is a case of attempting to close the stable door after the horse has bolted. This month I called on all Irish banks to implement the six-month moratorium on foreclosures for homeowners announced by RBS. What is needed is protection for all those affected and support for the many who are struggling with mortgage repayments. It is high time the banks showed the same leniency towards mortgage payers as they have shown to property developers in recent times.

The Government has failed to ensure rental properties are inspected and meet the required standard. There are also significant problems in the rental market. In 2006 only 3% of all rental properties were inspected. Last month the Minister for the Environment, Heritage and Local Government, Deputy Gormley, stated measures to improve standards in rental accommodation would come into effect on 1 February 2009. It is farcical that there is a phasing-in period for existing landlords of four years, although first-time lettings will be affected from 1 February. We on this side of the House welcome these measures which include the provision of separate toilet facilities, piped water and fire safety measures in rented accommodation. New standards are welcome but a four-year phasing-in period is ridiculous. There are approximately 200,000 registered private tenancies in Ireland, yet in 2006 only 6,800 were inspected. The increase in non-compliance fines of €2,000 is negligible. It is necessary to increase them to a level that will make landlords take the matter seriously.

Fine Gael has raised consistently the issue of property management companies, in respect of which we need regulation. More than 500,000 people reside in apartment blocks and 4,600 property management companies are in operation, yet there is no legislation in place. It is farcical that a regulator has been in place since July 2006 but he has no statutory powers to take action against rogue property management companies and agents which operate in the market. They do not offer value for money to hard pressed property owners who already face negative equity and the added burden of exorbitant property management fees. The lack of regulation is a big failure on the part of the Government. The matter needs to be addressed.

I am extremely concerned about the lack of inspection of apartment complexes in terms of fire safety measures. A recent fire in an apartment complex in my constituency gave rise to many issues. It emerged that fire drills did not take place on a regular basis and that there was no fire safety equipment in the complex. In addition, fire brigade personnel could not gain entry to the building as it was a gated development. They had to rely on an apartment owner to gain access. The fire service should be able to gain access to apartment complexes.

The Government has failed to deliver on housing. We have a major social housing waiting list of 56,000. That failure can be laid at the door of the Minister of State and the Government which has mismanaged the economy and squandered a great deal of money in areas where it should not have. It should seek to provide at least 15,000 houses and have a realistic target to help those on housing waiting lists.

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