Dáil debates

Tuesday, 31 March 2009

Housing (Miscellaneous Provisions) Bill 2008 [Seanad]: Second Stage (Resumed)

 

5:00 pm

Photo of Joe CostelloJoe Costello (Dublin Central, Labour)

I welcome the opportunity to contribute to this debate on the Housing (Miscellaneous Provisions) Bill. It is worthwhile legislation that provides a framework for the delivery and management of social housing and gives effect to social housing reform in terms of "Delivering Homes Sustaining Communities". Any legislation, however, should start with a recognition of the right to a roof over one's head. It must be established that every citizen has a right to a home.

Many Deputies have received documentation requesting that the legislation include the recommendations contained in "The Way Home: A Strategy to Address Adult Homelessness in Ireland 2008-2013", the Government's new homeless strategy, that would place on a statutory footing local homeless fora and action plans, with a responsibility on the local authorities and housing agencies to ensure they would meet their commitments in housing terms. Those of us who have been dealing with local authorities, housing agencies and the homeless would like to see a legally binding commitment whereby those who are in charge of providing services deliver them adequately, efficiently and in a reasonable timescale.

In my constituency or that of Deputy Upton, one will see flats and houses boarded up and left unrepaired. There are complexes that have been run down, with unacceptable levels of anti-social behaviour leading to swift deterioration, making life miserable for large numbers of people. These are services where there is a requirement on the local authority and housing agencies to ensure complexes are maintained to a high level but they are services that will not be delivered unless there is a legal obligation to do so.

The Bill should ensure the homeless are housed within a reasonable time. During the glory days of the Celtic tiger, the number of homeless increased because the rule of the market was let rip and the private sector did the ripping. Land banks were sold by local authorities to the private sector and private development boomed while local authority development stopped. The housing and homeless lists have as a result increased. That is the sad fact.

Now the boom has turned to bust and we saw recently how the regeneration programme under public private partnerships went belly up in many Dublin City Council areas. The same has happened elsewhere. That happened because there was no coherent approach and the money was not spent in the right place or in a targeted way to allow local authorities to carry out work. They could have done it through contracts that allowed for control over design, delivery and resources. Many complexes could have been regenerated but have been ruined by anti-social behaviour.

The Government proposes to examine the bad debts that exist and set up an agency that would deal with the disposal of property and sites that are now worth only a fraction of what they were when the banks gave out major loans to buy them. These debts have caused the toxic nature of our banks. Is it not possible to provide a mechanism for local authorities to buy back some of those properties or land banks that were sold to the private sector and, therefore, there could be a regeneration by the local authority of the necessary social housing in a planned fashion? Is this not the time to provide the country with a land bank for social housing in the future? If the money was forthcoming from the Department of the Environment, Heritage and Local Government, this would present the opportunity to buy land and property at bargain basement prices because, otherwise, these sites will be bought at such prices by the developers of the future. We should note how Irish Glass was bought and sold to the docklands consortium for more than €600 million, and what is happening to the Beamish and Crawford site in Cork, where Heineken suggested it would turn the oldest brewery in the world into an interpretive centre but now it will be sold off. All sorts of vultures will be circling to grab these prime locations for bargain basement prices. Why should local authorities not have the resources to purchase such sites and replenish local authority housing stock for the future?

It is time to re-examine the Kenny report and introduce some of its recommendations. The idea the market rules supreme, unfettered and untrammelled is gone. Development land must be for homes for people, not property portfolios. In the past, rezoned land developed an exorbitant profit value. Should we not be regulating the property market? It is not unreasonable that land for development purposes, once rezoned, should retain its market value with only a 25% mark-up. That should be the only advantage a property developer gets, no more. The common good must rule supreme in this, above that of any individual speculator or developer.

These are provisions that should be introduced in a housing Bill, particularly when we look back at what has happened. It is sobering when one considers the property boom was once at the centre of the Celtic tiger economy but was also the cause of its collapse. A regulatory system is needed that benefits people rather than private individuals or consortia. Any developments in this Bill must take into consideration the lessons of the first major economic boom and bust episode in our history.

The current economic situation provides an opportunity for repairs and maintenance to be carried out to existing local authority housing stock. It also provides an opportunity for homes to be properly insulated, so that it does not cost an arm and a leg to heat them, and extensions to existing homes for the disabled and those of enlarged families. This is an opportunity for reviving construction in the local economy.

As Deputy Upton pointed out, the affordable housing market needs to be addressed. The prices for many of these affordable homes are off the wall. Why would anyone get involved, particularly considering the conditions laid down by local authorities, in purchasing an affordable home when one can buy a house in the private sector for less? The local authorities have not responded to the changed circumstances. This is where direction should be coming from the Department of the Environment, Heritage and Local Government so that people will avail of affordable housing schemes.

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