Catherine Murphy (Kildare North, Social Democrats) | Oireachtas source

Today all of the attention will be on two budget options and whether the Government will opt for budget A or budget B in the autumn. Regardless of which budget is presented, we cannot afford any more wasteful spending as a result of particularly poor economic decisions. Unfortunately, disastrous economic decisions continue to be made. It is no longer news that we are in the grip of a housing emergency, yet the housing delivery system continues to be one of the most expensive in the world. Today The Irish Timestells us that the latest economic report shows that over half the country is unaffordable for the average house buyer. The most recent report by daft.ieon the private rental sector showed that only 2,700 properties were available nationally. The average cost of renting in Dublin is in excess of €2,000 per month and prices have increased for 31 months in a row. Average rents nationally are 8% higher than this time last year. The Minister for Housing, Planning and Local Government, Deputy Eoghan Murphy, recently described his plans for expensive co-living spaces, measuring 16.5 m², as "exciting" and suggested younger people should be willing to make sacrifices. I am sure the Taoiseach is aware by now that An Bord Pleannála has refused planning permission for such a co-living development on the grounds that it would fail to provide an acceptable living environment.

Serious concerns have been raised by several sources about the unsustainability of the HAP system which is estimated to cost about €2 billion in the next few years. Figures show that the Government's preferred turn-key option will cost €70,000 per unit more than a new build. It is not a stretch to say the Government's housing policy is an economic and social shambles. Recently the Committee of Public Accounts learned that a hotel room to accommodate a typical homeless family for one year would cost the State €67,000 compared to the average cost of servicing a mortgage or rental accommodation. There is a serious disparity. How can the Taoiseach stand over such economic madness? That is without taking into account the social consequences of such economic policies, particularly for children.

Clearly, this dysfunctional economic approach is working for some. One of the world's biggest vulture fund management groups, Link Capital, has stated Ireland is the gift that keeps on giving, referring to the level of distressed mortgages from which the fund derives 62% of its annual revenue through the heartache of Irish homeowners in distress. Government inaction on rental accommodation, distressed mortgages, vulture funds and most housing issues has only added to the problem. Will the Taoiseach commit to legislate to end the special tax benefits for REITs and use legislation to ensure they will not be allowed to dominate the private rental sector? Will he commit to an immediate rent freeze in order to protect immediately those at risk of losing their rented homes when the next rent hike inevitably comes?

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