John Lahart (Dublin South West, Fianna Fail) | Oireachtas source

As my party’s spokesperson on Dublin I want to focus on measures that do or do not focus on the needs of the people in the capital. While the additional funding for housing in budget 2017 is welcome, I have some concerns about the new home buyers' saving scheme and the omission of measures to help reform the rental market and the absence of reforms to fast-track social housing. From the moment the budget was announced, the first-time buyers’ scheme came under close scrutiny from my party. One result of this proposal will see first-time buyers chasing fewer than 10,000 housing units expected to be built next year. Without any accompanying measures to increase supply`, this help to buy scheme could make the housing crisis worse and lead to the overheating of house prices. As the Minister for Housing, Planning, Community and Local Government is aware, there is already an anecdotal suggestion that some builders have simply hiked the price of their properties already on the market commensurate with the terms of the scheme being introduced. When supply cannot cope with demand and measures are introduced that promote demand or create the impression that existing house prices are attainable, the Minister has created an incentive for demand that cannot be met in the short term. He is in danger of inflating demand for a stagnant supply. This budget has announced no measures to boost the supply side. Basic economics dictate that when supply cannot meet demand, prices rise, and supply cannot meet demand for houses in the capital.

The average house price in Dublin is €330,000 for a three-bedroom semi-detached house. Apart from giving first-time buyers an incentive to buy, there other factors which influence the price of a house. Site development in Dublin adds an average of €150,000 to each unit price. Levies and professional fees contribute a further €11,750. The initial site cost contributes an average of €57,500 to each housing unit. Sales and marketing costs contribute another €8,200 on average. The average per unit cost of finance for the build is €20,000. VAT adds another €3,900 per unit, leaving a profit per unit of €38,000 and that profit may come many years after the initial investment. There are no measures in this budget that address these supply side issues, that would assist in the release of equity to builders or that encourage off-balance sheet investment. These points have been made by my party colleagues. For a first-time buyer living in the many parts of Dublin where there are no new homes available to buy, this scheme simply does not apply and unfairly favours those first-time buyers who are geographically better located.

I welcome the additional €150 million allocated from the capital budget towards new social housing provision. However, there is nothing in the budget which will bolster local authorities to enable them to deliver on these new housing targets. The councils have been given moneys to provide more housing. Regrettably, the Minister decided in this budget to cut the operational budgets of the local authorities by 7%. These are enabling budgets that empower the councils to draw up the plans, do the drawings, conduct site surveys and so on. Just as the Government increases the budget to address a problem, it creates a different problem by decreasing the funds which enable local authorities to carry out this function. This cut in the operational budget will severely restrict the ability of the four Dublin local authorities not just to provide usual services but also to deliver social housing. If the Dublin local authorities are to deliver increased social housing outputs, they will require much more significant staffing allocations and expertise to increase that housing supply, yet the Government has cut the source of such human resources.

The level of investment secured for transport in budget 2017 does not reflect Dublin’s position as an area of key strategic importance for the economy and society. The M50 is almost at capacity, particularly at peak times, and is beginning to challenge the movement of freight from the port to the rest of the country. It will be three years before the electronic digital display overhead gantries along the M50 will be operational, ensuring that when there is an accident on the M50, and there are many, traffic and the capital will grind to a halt. The Minister for Transport, Tourism and Sport stood by when the National Transport Authority, NTA, announced a cut to the budget for the proposed cycleways planned for Dublin. I was a councillor when these were proposed years ago and they would contribute significantly not only to the tourist attractiveness of the capital but also to making it safe for commuters to travel to work and leisure activities. The city bike scheme is treated by this Minister as some luxurious add-on for the city, and yet anyone can tell that it has become an essential part of the public transport network, displacing taxis and buses throughout the day.

It is long past time this scheme was extended to the suburbs such as Templeogue, Terenure, Rathfarnham, Milltown, Goatstown, Dundrum, Inchicore, Kimmage and Drumcondra, to name a few. City bikes are an integral part of public transport in Dublin and ought to be treated as such.

Dublin is in trouble, yet its potential as a driver for the economy has never been greater. This Government lacks vision when it comes to Dublin. It is barely mentioned in the programme for Government. When it is mentioned in a number of references, it is to do with the amount of investment being made outside the capital. "Dublin" has become a bad word, yet it is the great engine of our economy. The Minister for Education and Skills recently announced that, given the post-Brexit context, the potential for Dublin to take advantage of the international English language education market is now a reality. It always was a reality. It could have been addressed in the years following the crash and yet it is only now, following the collapse of a dozen or so language colleges due to poor regulation and no protection of students, that a paltry investment is being made in a market that is literally worth billions internationally. However, the Government has no plans and no vision for an area that is ripe with growth potential.

Despite all the hyperbole and contrary to what people may believe, things are not beginning to boom in many parts of the capital. Dublin still has the most disadvantaged areas and communities in the country. Life beyond and within the boundaries of the Red Cow roundabout, which is often cited here, is not as Deputies often describe it. Two of the constituencies beyond the Red Cow roundabout are Dublin constituencies. I represent one of them and my colleague, Deputy Curran, represents the other. Two of the most disadvantaged areas in the country are located beyond the Red Cow roundabout.

Income tax receipts fell below anticipated revenue. Corporation tax is performing acrobatically and we will have to monitor it in the coming years. We need new sources of revenue. There are obvious new sources of revenue that could be explored by this Government but the budget fell very short in terms of that requirement.

I am aware that my time is up. I thank the Leas-Cheann Comhairle for giving me the opportunity to contribute.

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