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

How can the Government justify using public money to underpin this level of profits for developers while removing most of the risk?

We have had over the past decade a disaster in terms of housing policies. Rents have doubled, while house prices have become more unaffordable, risen 15% in the past year and are about to pass their Celtic tiger peak. Rents and house prices, especially in Dublin, are among the highest in the European Union. Homelessness has skyrocketed, increasing by 22% in the past year. Under the last few Governments, the rates of home ownership have fallen year after year.

There is an alternative to what the Government proposes here that could see these homes built. At a fraction of the cost the State could buy out the sites and planning permissions and ensure true financing from the Housing Finance Agency so that much-needed affordable and cost rental homes are provided on these sites. That would provide the additional supply needed, create downward pressure on rents and house prices and, crucially, mean more homes available to rent and buy at prices people can afford.

The Government could also bring in a zoning for affordable housing with price caps built into the zonings. That should be introduced and has worked effectively in cities like Vienna.

This is one of the reasons people are able to rent a two-bedroom apartment near Vienna city centre for approximately €650 a month. This is about half of cost-rental rents here.

Will the Minister use his time to tell us where the idea for large subsidies came from? Was it his idea or did it come from lobbying by developers? Why has no economic valuation of the scheme been carried out? By how much will it increase land prices? What knock-on effect will this have on the price of apartments? How much profit will developers make from these subsidies? Why is public money being used to guarantee these profits while reducing and eliminating much of the risk? I want the Minister to use some of his time to answer these questions. The public has a right to get information on this and get these answers. The Minister owes this to the public given that he wants to gift €450 million of their money to developers.

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