Joan Burton (Dublin West, Labour) | Oireachtas source

I am delighted that the budget provides for a capital investment of €2.2 billion in social housing provision over the next three years. I thank Deputy Wallace for acknowledging that. The plan will involve investing €1.5 billion directly from the Exchequer with public private partnerships and off-balance sheet vehicles to get approximately €400 million more in by 2017. There will also be an off-balance sheet financial vehicle to provide another €400 million from 2015 onwards to approved housing bodies, of which Deputy Wallace will know there are quite a few in Wexford. Approved housing bodies have provided good social housing for people including very often those with specific needs and requirements and older people. I have seen commentators from every part of the spectrum welcome strongly this budgetary provision. It is the way to go.

In relation to the Central Bank consultation, I stress that the bank is independent. Part of the reason for the crash in the building industry was tax breaks for investment in property. Deputy Wallace has seen more than most of us of the ups and downs of the property game. Many people who worked hard lost everything. However, we must learn from that lesson. It is important to have prudential regulation which we did not have at the height of the period of the boom. As with all booms, the behaviour then was irresistible and it was only when there was a crash that people could look back and say we did not do it right. The income limit the Central Bank proposes is reasonable. On the issue of the deposit, I have heard many organisations and individuals make comments querying that. It is a public consultation process and it is open to every Member, party and grouping in the House to put forward their views on this to the Central Bank. It is important outside of party politics that people give the Central Bank the benefit of their views and expertise in the area. I recommend strongly that people do that.

I strongly support the development of social housing. I agree with Deputy Wallace that we do not want to go back to the enormous local authority estates of 650 houses. In my constituency, there are 2,500 local authority houses. They are very good quality houses and often better than some of the buildings put up at the height of the boom as they were built and supervised of local authorities. However, we want to see mixed housing with people of all incomes and ages being able to live in their own towns and cities in appropriate, good quality housing that is well insulated and takes into account the climate change issues that face the planet. We need warm insulated homes. We have provided significantly for that since taking office.

See this speech in context