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

The issue I have with this Bill, as with much of the Government's approach on housing and certain other areas, is that it is based on very good social democratic ideas, which are supported by progressive parties if not taken from them, but those ideas are, in effect, undermined and subverted by trying to put for-profit models onto models that only work because they are successful not-for-profit models. That is the whole point. Affordable housing is done well in other countries where it is done on a not-for-profit basis. That is how we get more affordable housing. Taking out the profit margins, speculation, fees and higher financing costs associated with for-profit development is how you deliver housing at more affordable rates. That is the key point. Housing is far too expensive, rents are far too high and thousands of people are cut out by unaffordable prices. A certain amount can be done through smaller schemes with subsidies and so forth, but if we want to scale this up and have housing that is genuinely affordable for thousands of people, and do so on a sustainable basis that we can maintain over years, regardless of the economic cycle, then we must do it on a basis that is actually affordable in terms of delivery and construction, not one that is reliant on relatively large subsidies that cannot always be sustained. That is why a not-for-profit, non-speculative model is important.

I refer to my amendments Nos. 12 and 24 in this grouping. Previous speakers have made the valid point that these proposals do not seek to remove the role of smaller private builders in delivery. Such builders have a very important role to play and always have done. My view has always been that they are a key part of the solution. The issue is trying to cut large private developers, investment funds and speculators out of the affordable housing sector to make the costs more affordable. That is what we are trying to achieve with these amendments. Lest anyone misunderstand my position, I want to be clear that these are not concerns I am articulating. I am articulating that I have a fundamental disagreement with the Government on this issue.

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