Mick Wallace (Wexford, Independent) | Oireachtas source

We often hear in here how the EU fiscal rules have prevented us from borrowing money at less than 1% of market rate to invest in infrastructure. If that is the case then it is long past time for the Government to challenge it. If the Government has not raised the housing crisis in Europe, I wonder why that is the case because our failure to address it properly is nothing short of shameful.

Seamus Coffey said the fiscal rules do not prevent spending on social housing. The choice of how our €70 million Government budget is used is a political choice, as are the choices around taxation, which increase or decrease that amount. The German research group, the IFO Institute say that between 1999 and 2015 there have been 165 instances where EU member states have violated the 3% hurdle for budget deficits. In only 51 cases was that permissible because the respective EU member states were in recession. However, in 114 cases it was not permissible. In none of the 114 cases were fiscal sanctions imposed on member states who broke the fiscal rules. It is very difficult to listen to anyone who comes in here and hides behind the fiscal rules rather than investing directly in the provision of social and affordable housing.

Yesterday, the Jesuit Centre for Faith and Justice launched its latest document on housing. It said that Rebuilding Ireland, the Government's Action Plan for Housing and Homelessness, relies far too heavily on market-based solutions to the problems facing Irish housing and that the plan will therefore fail in its stated objective of developing a housing system that is affordable, stable and sustainable. When in God's name will the Government wake up and smell the coffee? The Government is going in the wrong direction in how it is dealing with housing. If the Government needs to challenge the fiscal rules in Europe then it should do so.

There was a recession in 1987 and we built 6,900 social houses. There was a recession in 2007 and we built 7,800 at the time. There was no recession in 2015, we were told. Indeed, we were told that the recovery had arrived at the election in 2016. There were 75 units built at the time. In 2016, there were 600 units built. Where in God's name are we going? We have allowed NAMA sell land and units for a fraction of the real value. NAMA sold 3,800 sites in Cherrywood for €27,000 and they are now worth over €100,000 each. The agency sold 440 apartments in Tallaght in January 2016 for €100,000 each. It now costs €430,000 for a new-build three-bedroom in Dublin. Where in God's name is the logic coming from?

NAMA still has land. It is funding developers to provide unaffordable housing. When is the Government going to decide to ring-fence State land for social and affordable housing?

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