Enda Kenny (Mayo, Fine Gael) | Oireachtas source

I think the Deputy is unduly pessimistic about the capacity of the industry to respond, although it is admittedly slow to take off. In Dublin and everywhere else, we will not deal with the situation until houses are built. In so far as the State is concerned, the Government has made an allocation of €2.2 billion to deal with all of the cases on the housing list - over 90,000 - over the next number of years. We are not just saying we propose to allocate this money. This money has already been provided and local authorities have been given their targets and directions, so let them get on with it.

The private sector must get involved here also. In the past six months, for example, some hundreds of millions of euro in terms of investment have come into the greater Dublin region. This creates a demand for housing, apartments, commercial industrial space and general infrastructure and calls for massive involvement of the construction sector, bringing jobs for builders. In respect of housing, there is clearly a problem in regard to where the changes in the rules of the Central Bank, which now require 40% of funding to be put up by builders. This was not the case previously, when 100% borrowing was allowed and the situation was allowed to get out of control, with builders building on the profits from sales. Then the entire process collapsed. The assumption at the time was that the State could run on the proceeds of the construction sector. The situation is different now, because all sectors across the board are making solid progress, for example, financial services, hospitality, the agri-sector and other elements making up our economy. What we need is capacity of competent contractors to build good and affordable houses.

I never want to see a situation again where contractors are let get out of control, where having got planning permission, they will proceed to build whatever they want on their land. We cannot have the Priory Halls or similar again. Deputy Boyd Barrett knows as well as I do that one of the key components of controlling the situation is to have a very good clerk of works examining these sites, someone who will point out what is not in accordance with building requirements and call for it to be knocked down.

They will soon learn not to build to an inferior quality. We have had some outstanding builders in the country who have built very good buildings and very fine houses.

The Minister, Deputy Alan Kelly, and the Minister of State, Deputy Paudie Coffey, are working at the moment on a number of elements which I genuinely hope will give a real stimulus and impetus to the construction sector, particularly housing. Deputy Boyd Barrett is probably aware that some people are advised to go on the homeless list when they leave their accommodation. The Department of Social Protection, the Tánaiste and Threshold have been very clear that if the information is available that the landlord will increase the rent, and that the tenant is likely to be put out on the street or removed from the accommodation, a scheme is operated by Threshold which provides rent assistance in individual cases. Many hundreds of people have received assistance and been able to stay in their accommodation. That scheme continues in operation. In many cases, people are either not informed about it or they are advised to go on the homeless list. Some local authorities have a much more vigorous response to providing houses than others, and where land is zoned, they get on with the business. Local authorities have received their targets and moneys from the Department of the Environment, Community and Local Government and building is already under way for units of two, five, ten, 20 or 100. Those who are likely to be caught by an increase in rent should certainly avail of the scheme because it has helped approximately 1,000 people to date. When the Minister comes back with a package, I hope some certainty in respect of rent will be included so that people can project forward with a degree of certainty. Such a package of measures will help to drive the agenda.

I hope the Department of Finance and the other elements of the financial institutions will be able to play their part as well. There is a requirement on contractors in terms of them being able to access the finance they need as a component of the overall approach to get building under way. The requirement is now 40% and some find it difficult to raise that amount. An examination is required of how that can best be accommodated. I hope we can debate the package of measures when the Ministers bring it to the Dáil.

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