Enda Kenny (Mayo, Fine Gael) | Oireachtas source

I thank Deputy Adams. In regard to his comment on the water charges, I understand Sinn Féin proposes that domestic water charges should be abolished and that this would then go back on the public pay bill. This would impose a charge of €850 million to be raised. I understand from its submission that it has left aside something like €300 million, leaving a hole in that particular area of €550 million, which it would need to explain.

I also understand that Sinn Féin wants to increase employers' PRSI by 5% and increase the top rate of income tax by 7%. That is an is an additional 12 percentage point tax on jobs. I am not sure if Sinn Féin is serious about this because if it is, it would drive every employer and every potential investor out of the country in terms of the creation of jobs. That would leave us with Sinn Féin's proposition of a 48% income tax rate, raising €365 million three years in a row. By implementing a 7% tax increase three times, it would raise the top income tax rate to more than 62%, leaving an incredible total tax rate of 73% when USC and PRSI are included. If it wants to close down the country, that is the kind of economics it should be proceeding with because it is not credible or real.

Deputy Adams raised a very important issue about housing. I want him to understand that the Government will respond to this, alongside the budget next week and in the time ahead. Clearly, there is a serious supply and demand issue, in particular in the greater Dublin area. The issue of homelessness, of those who have been put out of apartments and houses because of rent increases and of the demand for housing - a demand which is rising very rapidly - is a cause of great concern. The recently published planning Bill, being dealt with by the Minister for the Environment, Community and Local Government, provides for a vacant site levy of 3% to encourage development, a new Part 5 to deliver 4,000 additional units by 2020, changes to development contributions and the use it or lose it approach to planning permissions. These are all designed to make an impact on the construction sector.

Deputy Adams knows contractors will not build houses unless it is profitable for them to do so. The Government is acutely aware of the fact we need an income stream for contractors to build and for buyers to purchases and a planning process in place to allow for that to happen.

There are many thousands of houses for which planning permission has been approved under the old regulations, some of them in the wrong place, but we will look at the incentives that might be brought in to make an impact on how this can happen.

The Government will publish shortly a five-year social housing strategy, which is the key commitment of the Construction 2020 document that we published. The need for social housing based on last year's assessment is very well documented and accepted by everyone. The Housing Agency has admitted that to meet housing need over the next five years, we need 35,000 housing units to be provided. The Government's challenge is to meet social housing need in an innovative and cost-effective manner. The ESRI has put forward its view, as some of the others have as well. The Government has to make a decision on this, and the strategy being finalised will take into account budget 2015 and will be published by the Minister, Deputy Kelly, very shortly after the budget. Deputy Adams should know that we are acutely conscious of it, as are the people looking for housing who will be accommodated in social housing. Government will produce its specific strategy and plan, alongside the budget, in the very near future taking into account all these very valid submissions.

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