Dáil debates

Wednesday, 16 June 2021

Acquisition of Development Land (Assessment of Compensation) Bill 2021: Second Stage [Private Members]

 

11:02 am

Photo of Cian O'CallaghanCian O'Callaghan (Dublin Bay North, Social Democrats) | Oireachtas source

The Social Democrats strongly welcome and support this Bill. In life and in politics, we must look at what people do rather than what they say. That is true in respect of housing policy, in particular. It is not just the veteran trade unionist and housing activist, Mick O'Reilly, who has noticed that the Labour Party has consistently raised the implementation of the Kenny report while in opposition, and consistently forgotten about it while in government. Everybody who has taken an interest in the Kenny report has noticed that.

It is 48 years since the Kenny report was introduced. For 21 of those years, the Labour Party was in government, over six Governments, from 1973 to 1977, 1981 to 1982, 1982 to 1987, 1992 to 1994, 1994 to 1997 and 2011 to 2016. During most of the times the Labour Party was in government, the Ministers with responsibility for the environment and housing were Labour Party Ministers. It rings hollow to hear the Labour Party talk about the implementation of the Kenny report when it has had so many opportunities to implement it.

I agree strongly with Deputy Kelly's statement that if the Kenny report had been implemented back in 1973, we would not be in the position we are now. That is correct. It is also the case, unfortunately, that when Deputy Kelly was the Minister with responsibility for housing, the number of social homes built was the lowest in decades. Rents started spiralling out of control when he was Minister. No rent certainty or regulation was introduced. It was left to a Fine Gael Minister to bring in the rent pressure zones, ineffective as they are. The numbers of homeless people, particularly families and children, started to go through the roof when Deputy Kelly was Minister. While the Bill is welcome, when parties get into government they must show as much commitment to these measures as they voice in opposition.

David McWilliams stated:

Ireland is the least populated country in western Europe, yet we have among the highest land prices. It's a stitch-up. It is really that simple.

He is entirely correct about that. It is a stitch-up. It is the result of failed policies on housing and land, where the policies benefit the few at a huge cost to everyone else. The uplift in land values from public investment in infrastructure and rezoning, which is done through a public process, is captured privately. That is why the implementation of the Kenny report is so important.

Deputy Howlin spoke eloquently about land speculation and windfall profits from it. He was dead right about that. People who speculate on land do not do anything productive to reap those profits. They just happen to have the money to be able to buy up a load of land, sit on it, wait - or indeed lobby - for it to be rezoned and accrue massive profits from it. What Deputy Howlin seems to forget is that when he was the Minister for Public Expenditure and Reform and introduced budget in the Dáil with the then Minister for Finance, former Deputy Michael Noonan, he abolished the 80% windfall tax that was in place against profits on rezoned land. It was probably the measure that came closest to some sort of implementation of the Kenny report in the 48 years since the report was introduced. This measure was abolished when Deputy Howlin had responsibility for it. He now talks about windfall profits and speculation, correctly so, and how they should be tackled but seems to have no memory as to what he did when he was the Minister with responsibility for this area.

Eloquence is great, as are the points that have been made. However, what we really need is for those who articulate those points and those who are in government to fight to implement them every step of the way, not to shrug their shoulders and then suddenly remember them when they are back in opposition. That is no use to anyone. It is no use to the thousands of people who have become homeless, especially in the years since the Labour Party was last in government, during which time rents have spiralled.

Public land is the key to providing the number of social, affordable and cost-rental homes that we need. We need to provide social homes at affordable purchase prices or costs to the State that represent good value. The key to that is ensuring enough public land is available. It is simply no good if parties continue to vote to sell public land to private developers at knock-down rates so they can build homes on the land, the majority of which are sold at full market prices. That is what is happening. It is what Labour Party councillors recently voted for, alongside Fianna Fáil, Fine Gael and Green Party councillors. We can make all the eloquent speeches we want, but if we keep selling public land at knock-down prices to private developers, including one of the largest developers in the country with one of the largest land banks that is producing homes at a very slow rate in order to maintain market prices at the level at which it wants to deliver them, we will not get any closer to solving this problem. Keeping land in public ownership is key.

The other key part of the equation is following the advice of the ESRI to avail of historically low interest rates in order to finance the construction of public and social homes, cost rental and affordable purchase. At the Joint Oireachtas Committee on Housing, Local Government and Heritage, in a discussion on the Land Development Agency, I raised the point that we should no longer follow the fiscal rules, which are an orthodoxy that no one else is following. The Minister legitimately responded that he does not have a crystal ball and cannot see into the future. I am not asking the Government to get a crystal ball and see into the future. I am asking it to see what is happening now in terms of 120,000 households that are on housing waiting lists or in insecure HAP tenancies and need their housing needs met. I am asking it to see what is happening in terms of over 8,000 people living in emergency accommodation. I am asking it to see, as the ESRI has pointed out, that growth is outpacing interest rates. Even in the most fiscally conservative analysis that the ESRI has produced, it still makes sense to at least double investment in the construction of homes. That is a conservative fiscal analysis. In fact, the ESRI has stated that it would be irresponsible not to do that. What the Government is doing now is irresponsible. It is irresponsible not to avail of current interest rates.

The Social Democrats very much welcome and support the Bill. However, I hope those proposing such legislation will actually seek to deliver on it when they are in government, and not just when they are in opposition.

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