Dáil debates

Wednesday, 18 May 2022

Subsidies for Developers: Motion [Private Members]

 

10:12 am

Photo of Holly CairnsHolly Cairns (Cork South West, Social Democrats) | Oireachtas source

I thank Deputy O'Callaghan and his team for their work on this Private Members' motion. At present on daft.iethere are 11 properties advertised for rent in Cork South West. There are fewer than 80 homes to buy for under €250,000 between all of the major towns in west Cork. It is a beautiful part of the world with strong communities. It is the type of place people want to live in. Unfortunately, like many areas of Ireland, young families and others simply cannot afford to buy a home there. Affordable housing is rare and social housing lists are unacceptably long. It is even worse for people with a disability. The reality for so many people of my generation is that home ownership is not possible.

In the past eight years house prices have doubled, growing by more than 12% in the past year alone. Rents have also doubled in a decade, while housing costs have skyrocketed, wages have flatlined and low pay is endemic. The situation is getting even worse. Many people now cannot find a place to rent, even at unimaginably expensive cost. Owning a home is just a pipe dream. This did not just happen. It is not some accident. It is the result of deliberate policy choices of Fianna Fáil and Fine Gael governments over the past two decades. The actions of this Government are not only perpetuating the problem; they are making it worse.

Now the Government intends to gift €450 million to developers to subsidise the construction of apartments that will be sold at full market price. This is a disgraceful abuse of taxpayers' money. It is almost unbelievable that the Minister is planning to give up to €144,000 per apartment to developers who can then sell them for up to €450,000 each. This is gifting public money to private developers. In the same week the Government is giving a €1 billion hospital to a private company, it is giving almost €500 million to developers. If it were not so serious it would be farcical. This €500 million could build affordable homes in communities throughout Ireland. It could give young families and others a chance at owning a home. It could transform the lives of thousands of people. Instead the Government is giving it to developers. How can anyone stand over this deal, which is giving subsidies of up to €144,000 per apartment to developers rather than to ordinary people? It is the clearest statement of the Government's priorities.

As the housing crisis gets worse and worse the Minister seems to have no idea of the realities facing families. Research has shown that last year the number of new homes available for individuals to buy fell to fewer than 6,000, which was its lowest level in years. The Parliamentary Budget Office, which is independent, recently concluded that home ownership among adults of working age between 25 and 54 in Ireland has collapsed. Instead of building homes for families, investment funds are buying up homes and building to rent.

Dereliction is another major issue that disgracefully is not being addressed. There are thousands of buildings dilapidating throughout the country. Activists in Cork city have identified more than 700 derelict buildings within 2 km of Cork city centre. The same can be said for Bandon, Bantry, Skibbereen and other towns and villages throughout Cork.

There are large buildings in the centre of the community that could house families but they have been left idle and are falling into disrepair. The Minister visited Clonakilty, Skibbereen and other parts of west Cork this week. I hope he was shown the very many derelict buildings. There are also many formerly fine farm houses that have been left to decay and collapse. If the Government is serious about supporting rural Ireland, then dereliction needs to be tackled. So far the Government policies to address this major issue have proven to be ineffectual and inadequate. Reporting vacant sites has essentially been made the responsibility of the general public. In addition there are no vacancy reduction targets in the Government's Housing for All plan not to mention that the vacant home housing unit only has one staff member.

It is incredibly disheartening for communities to see buildings crumble before their eyes. These are sites that would have cost a few thousand euro to do up but that work will now cost hundreds of thousands of euro due to Government inaction. It is even more frustrating and distressing for families searching for homes to witness buildings being left idle. The time to act is now. The almost €150,000 the Minister is giving to developers for each apartment would make a massive difference in converting buildings in places like Bandon and Kinsale into homes or save farmhouses across rural Ireland.

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