Dáil debates

Tuesday, 4 October 2022

Housing for All Update: Statements

 

7:00 pm

Photo of Verona MurphyVerona Murphy (Wexford, Independent) | Oireachtas source

If Housing for All was a leaving certificate subject, the Minister, Deputy Darragh O'Brien, would fail. The aim of Housing for All, according to the executive summary, is "access to a quality home to purchase or rent at an affordable price, built to a high standard ... offering a high quality of life." This was to be achieved in four ways, namely, supporting home ownership and increasing affordability, on which the Minister has failed; eradicating homelessness, increasing social housing delivery and supporting social inclusion, on which he has failed miserably; increasing new housing supply - he forgot to say for cuckoo funds mainly; and addressing vacancy and efficient use of existing stock - using an unenforceable 30-day occupancy rule which will cost more to police than it will yield.

In the midst of a housing crisis that the Government now recognises, it is beyond belief that it would then come along and decide to apply a 10% levy on concrete blocks. Will the Minister of State, Deputy Burke, clarify whether that levy will apply before VAT or does it include VAT because that would make it dearer again?

The housing crisis is caused mainly by one problem. We have a lack of supply, which has been worsened by a variety of actions taken by successive Governments over many years, including the imposition of extra taxes and charges, the implementation of planning requirements that have no basis in law and the adoption of county development plans that do not suit the needs of the areas they are developed to serve.

Judging by some recent stories about where people are being accommodated and newly released homelessness figures, it is clear that we do not have the appropriate resources available to cater for the numbers of people in need of accommodation. The fact that the numbers are increasing day by day is a sign of the Government's failure to deal with housing in a positive and effective way. These are not numbers; they are people - children and their parents and grandparents.

In circumstances where we have a lack of supply, one would think the Government would take measures to reduce the cost of building a house. By refusing to remove excise on fuel and instead increasing the tax take by upping carbon tax and then taxing the tax, the Government has made it more expensive to run every vehicle needed in the process of building a house. That includes the on-site machinery but also every vehicle used in the transportation of goods and materials to the building site. All of these costs will be shouldered by the end buyer of the house - in the case of people building their own home it will put such ambition beyond the reach of many - or by the taxpayer footing the rental assistance bill of almost €1 billion, including HAP, that is being paid out.

Through VAT, the Government makes auctioneers and solicitors fees 23% more expensive. The architect's fees will be 23% more expensive. There will be VAT charged on mortgage services. Most of the materials are already 23% more expensive due to VAT and we do not know whether this concrete levy will be 10% plus VAT or will include VAT. It needs to be clarified whether the levy will be applied inclusive of or plus VAT? Are we taxing the tax continuously?

It is unbelievable that in the middle of possibly the worst housing crisis in the history of the State this Government has not considered measures rolled out across Europe to have new builds rated at zero VAT. If it wants one big idea with which to help with building supply to solve homelessness once and for all, it should consider a zero VAT rate on new builds. Housing for All, how are ye?

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