Pearse Doherty (Donegal, Sinn Fein) | Oireachtas source

Tá géarchéim tithíochta ag cur isteach ar mhórchuid de dhaoine agus ar chaighdeán saoil oibrithe, ar theaghlaigh agus ar dhaoine óga ar fud na tíre. Tá an ghéarchéim seo ann mar gheall ar deich mbliana d’Fhine Gael i gcumhacht agus ní thig linn an seans a ghlacadh go ndéanfaidh Fianna Fáil an scéal níos measa arís. Níl dabht ann go mbeidh sé níos measa mar gheall ar an scéim atá molta ag an Aire agus an Rialtas. Caithfear deireadh a chur leis an scéim seo.

The housing crisis did not happen by accident. It happened as a result of a decade of failed Fine Gael policies. Workers and families cannot afford a continuation of that failure. That is why the proposed Fianna Fáil developer-led scheme from the Minister, Deputy Darragh O'Brien, must be scrapped. It is a demand-side response to a supply-side problem. It is bad economic policy with one effect, namely, to push up house prices. The scheme is an import of the Tory policy implemented in Britain and peddled here by property developers. The Minister has been taken in, hook, line and sinker, and is selling their wares.

Under the scheme, the Irish taxpayer will, in essence, be betting on the housing market. The head of the National Audit Office in the UK commented in the report on the British scheme: "The scheme has...exposed the Government and the taxpayer to significant risk if property values fall..." The same report found that the risk extends to borrowers themselves, who, if they want to sell their property soon after purchase, might find they are in negative equity. The scheme the Minister is proposing could see the buyer taking on an overall debt equivalent to more than five times their income, bypassing the Central Bank's mortgage measures. Those measures were put in place for a reason, namely, to protect borrowers and avoid what the Central Bank describes as a credit house price spiral. The scheme seeks to sidestep the rules, risking further house price inflation. The ESRI told the housing committee that it will very likely lead to higher house prices. The ESRI's was not the only voice giving that warning. Its view is shared by the Central Bank. Even the former Secretary General of the Department of Public Expenditure and Reform, Mr. Robert Watt, stated that the property industry wants this scheme because it will increase house prices.

The Minister should listen to that statement from Robert Watt. He said those in the property industry want this scheme because it will increase house prices. The ESRI, Central Bank and other bodies are all saying the same. Yet, the Minister is determined to plough ahead with this damaging policy despite all the warnings. It is reckless and a display of arrogance from the Minister. The resources are better spent by investing in genuinely affordable homes. We know that is the real answer to what is needed. What is needed is to scrap this scheme, drop the arrogance and support the motion from my colleague, Deputy Ó Broin.

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