Charlie O'Connor (Dublin South West, Fianna Fail)
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I wish to share time with Deputies Nolan, Curran and Fiona O'Malley.

David Stanton (Cork East, Fine Gael)
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Is that agreed? Agreed.

Charlie O'Connor (Dublin South West, Fianna Fail)
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I am all alone on the Fianna Fáil backbenches, but I will not panic. I welcome the Minister of State, Deputy Noel Ahern, to the House. I hope he will not be offended if I applaud the work he is doing in the housing area. I am always happy to support his work in that area and in his other portfolio, in which he has responsibility for the drugs strategy and community affairs.

I listened with interest earlier to the fair comments of the new Fine Gael Member for Meath, Deputy McEntee, during the debate on the Garda Síochána Bill. I was glad to hear him praising the work of the Minister for Justice, Equality and Law Reform, Deputy McDowell, as I have done on many occasions. I compliment Deputy McEntee on his contribution. Perhaps Fine Gael is changing by giving an opportunity to people who will express honest and fair opinions.

I compliment Deputy O'Dowd on introducing the motion before the House. I am always happy to speak on Private Members' business because it is important that we should discuss the issues of the day. I do not doubt that the issue of housing, for which the Minister of State, Deputy Noel Ahern, is responsible, is among the issues of the day. I am happy to support the Minister of State, who has visited Tallaght and other parts of the Dublin South-West constituency on a number of occasions. I hope he will visit the constituency on many further occasions to bring much more good news to the area during the 800 days which remain before the next general election.

It is important to point out that Dublin South-West has a relatively young population. The constituency includes many places other than Tallaght, which is the third largest population centre in the country, such as Firhouse, Templeogue, Greenhills and Brittas. Many young people come to my constituency clinics every week to discuss housing issues. While some of them are seeking improved housing provision, many others speak about the issues raised in the Government's amendment to this motion. I refer to matters such as rent subsidy, homelessness and problems of anti-social behaviour. In the short time available, I intend to discuss some of those issues.

The Minister of State has my full support as he continues to develop housing programmes in co-operation with the various local authorities. South Dublin County Council has taken the Minister of State's advice in recent years by implementing a rolling programme that covers many years. It is using public money in a good way to develop its housing stock. Rather than sitting by the telephone as they used to do, local authority officials now know where they are going with the house-building programme. The Government should continue to support the programmes of social and, in particular, affordable housing. The Minister of State should understand how important such programmes are to young people in places like my constituency. I am sure other Deputies will refer to other areas and I have no problem in supporting them.

We should redouble our efforts to tackle the problem of homelessness. I am aware that the problem is found in other jurisdictions, but it is not good enough that people are homeless in this day and age. There is no homeless unit in the Tallaght area. The Minister of State is aware that I often make the point that homelessness is something of an underground problem. One sees people sleeping rough in parks and under the canopy in the priory. It is important that we should understand the challenges we face in this regard. I am sure the Minister of State will not mind me saying that we need to support such people, not only through the housing schemes but also through the involvement of other agencies. It is important that we should do that.

I would like to speak about rent subsidy and other related initiatives taken by the Minister of State, such as the establishment of the Private Residential Tenancies Board and the measures taken as part of the fight against anti-social behaviour. I have told the Minister at other forums that it is important that Members should support such initiatives. Deputies speak about the issues of the day in their constituencies, but I am sure, like me, they often hear people complaining about anti-social behaviour. I will not name areas because I do not want the people to think I am focussing on their localities.

The problems associated with anti-social behaviour, which is found throughout the country, are the responsibility of the Minister for Justice, Equality and Law Reform as well as the Minister of State with responsibility for housing. It is important that the Minister of State, Deputy Noel Ahern, understands that he has the support of the House in continuing to deal with these problems. He has made some excellent efforts in recent years. He has reminded those who continue to engage in anti-social behaviour that it is not acceptable. Not only do we have to deal with such behaviour in local authority housing estates, but, as I have often said to the Minister, we also have to deal with it in private estates. It is right that those who are encountering problems caused by young people or other anti-social elements in their estates should have the protection of the law and all the agencies and should be entitled to redress.

I do not like to make a distinction between private and local authority estates, but that distinction exists. People in such estates often say they wish regulations were in place to ensure the force of law is brought to bear on those involved in such behaviour in their estates, just as it is in local authority estates. I hope the Minister of State will continue to pay attention to these issues.

There have been improvements in the rent subsidy scheme, but we face further challenges in that regard. I ask the Minister of State to continue to give such issues as much attention as possible. I am aware the matter falls within the remit of the Minister for Social and Family Affairs. During a debate on housing, it is relevant to point out that State funding should not be allowed simply to be put into the black hole that is landlords' bank accounts. We should ensure that people have proper housing. If they cannot afford to purchase private housing, which is a clear issue that we have identified, they should be given as much assistance as possible. There must be some way of ensuring that we do not merely hand out rent subsidies every single week in respect of property that does not accrue to tenants or to the State. Perhaps we should adopt a more radical approach to this aspect of the problem.

I wish the Minister of State, Deputy Noel Ahern, well. He has my full support in this area of his remit and in the other work in which he is engaged. I hope he understands the issues I have raised are of concern to communities in Dublin South-West and elsewhere. I look forward to expressing my support for him at the end of this debate.

Finian McGrath (Dublin North Central, Independent)
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The Minister of State has not delivered. There are thousands of people on the waiting lists.

John Curran (Dublin Mid West, Fianna Fail)
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I welcome the opportunity to speak in this debate.

Bernard Durkan (Kildare North, Fine Gael)
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The Deputy should not speak too soon.

John Curran (Dublin Mid West, Fianna Fail)
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Housing is a topic worthy of debate and I thank Fine Gael for tabling the motion, although I do not support the sentiments in it.

The country has seen radical change in recent years. When I left school, many students in my year had to emigrate but that is no longer the case. People are staying and we are experiencing inward migration. Our population is rising. Family units are changing significantly and those issues are changing the demand for housing whether we like it or not.

The Fine Gael motion refers to the abolition of the first-time buyer's grant, the increase in VAT rates on houses and the imposition of development levies. It implies that if the Government had not done these things, houses would not be so expensive. That is a load of rubbish. House prices have nothing to do with the cost of the provision of housing, they are a question of supply and demand. That is why gazumping is so relevant. It is as a result of what the Government is trying to do that demand is so high that our output is——

Séamus Healy (Tipperary South, Independent)
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There are 70,000 families on local authority housing lists. Is that demand?

Finian McGrath (Dublin North Central, Independent)
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PD economics.

John Curran (Dublin Mid West, Fianna Fail)
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It is precisely because demand is so high that house prices are high, because supply has not equalled demand.

Bernard Durkan (Kildare North, Fine Gael)
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Demand remains high because people do not have houses because the prices are so high.

John Curran (Dublin Mid West, Fianna Fail)
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In recent years because of policies adopted by the Government, supply has increased significantly.

Séamus Healy (Tipperary South, Independent)
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Government policy was to build 5,000 local authority houses while 70,000 families are on the waiting lists.

John Curran (Dublin Mid West, Fianna Fail)
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That is a fact. I would like an honest, open and frank debate about that but Opposition Members do not want to look at the issues.

Bernard Durkan (Kildare North, Fine Gael)
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We will be honest and frank.

John Curran (Dublin Mid West, Fianna Fail)
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The real issue is not VAT rates but the Government effort to produce a supply that equals demand.

Arthur Morgan (Louth, Sinn Fein)
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It is a damn poor effort.

John Curran (Dublin Mid West, Fianna Fail)
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We are doing that at record levels. We built 77,000 houses last year, far in excess of anywhere else in Europe, because the economy of this country has radically changed. I am from the era when my classmates had to emigrate but we have changed. We have the opportunity in this country for people to stay at home.

Bernard Durkan (Kildare North, Fine Gael)
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If we applied that argument across the board, there would be no hospitals or schools.

John Curran (Dublin Mid West, Fianna Fail)
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That is the challenge. That is not the issue the Opposition is prepared to debate. That is the reality. This Government saw the challenge and addressed it.

Finian McGrath (Dublin North Central, Independent)
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They walked off the pitch.

John Curran (Dublin Mid West, Fianna Fail)
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The reality is that output in terms of delivering houses to meet the demand is far in excess——

Finian McGrath (Dublin North Central, Independent)
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To whom are they going? It is the wealthy and the elite who get the houses.

John Curran (Dublin Mid West, Fianna Fail)
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It is not the wealthy.

Séamus Healy (Tipperary South, Independent)
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What about the local authority lists?

Séamus Pattison (Carlow-Kilkenny, Labour)
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Order, please.

John Curran (Dublin Mid West, Fianna Fail)
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It is difficult to speak, a Leas-Cheann Comhairle.

Finian McGrath (Dublin North Central, Independent)
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In any other country in the European Union the Minister would be sacked.

John Curran (Dublin Mid West, Fianna Fail)
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I pointed out a few facts. I was trying to have an honest debate but I could anticipate the reply before I said a word about the motion.

Bernard Durkan (Kildare North, Fine Gael)
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If the Deputy invites comment, he will get it.

John Curran (Dublin Mid West, Fianna Fail)
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There is an aspect to the motion tabled by Fine Gael that I had intended to agree with——

Fergus O'Dowd (Louth, Fine Gael)
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Asking for the Government to resign forthwith.

John Curran (Dublin Mid West, Fianna Fail)
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——but I may not get an opportunity to do so. If the Members opposite wait, I will get to it in a moment. There was also reference in the motion to the number of affordable houses delivered to date. We should be honest about this issue. Had the Members opposite wanted a proper debate, that was not the way to put forward the motion. When Part V of the Planning and Development Act came into force, everybody knew there was a lead-in time. Planning permissions first had to be granted under the system and then the projects physically delivered.

A few weeks ago representatives from the Department of the Environment, Heritage and Local Government appeared before the Committee of Public Accounts and gave their projections, and there is significant growth in those figures. It is easy to be critical and say the Government has not delivered but it is delivering. It is easy to get political mileage——

Finian McGrath (Dublin North Central, Independent)
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Eight years.

John Curran (Dublin Mid West, Fianna Fail)
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It is not eight years since the Planning and Development Act. The number of houses that will be delivered this year under Part V will be significantly more than last year. The projections from South Dublin County Council are that 400 or 500 houses will be built under Part V this year alone. We are making progress——

Bernard Durkan (Kildare North, Fine Gael)
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Some people might not describe it that way.

John Curran (Dublin Mid West, Fianna Fail)
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——but the motion does not recognise that. I agree with one aspect of the motion but Fine Gael was not the first party to raise it. It is not the first time it has been debated in the House.

Bernard Durkan (Kildare North, Fine Gael)
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The Deputy is right about that.

John Curran (Dublin Mid West, Fianna Fail)
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Deputy Durkan does not even know what I am about to say, yet he is telling me I am right. He jumped in without even knowing what I was going to say.

Bernard Durkan (Kildare North, Fine Gael)
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Whatever the Deputy says, it will be the only aspect about which he will be right.

John Curran (Dublin Mid West, Fianna Fail)
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If I am right about it, I will thank Fine Gael for supporting an issue I first raised in this House.

Bernard Durkan (Kildare North, Fine Gael)
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Tell us about it.

John Curran (Dublin Mid West, Fianna Fail)
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It concerns the fact that the affordable housing scheme is becoming more popular but one of the problems in delivering the scheme is that many of the people who qualify to participate are experiencing difficulties coming up with the deposits. The State should examine the possibility of establishing a savings scheme for first-time buyers or specifically for those who might qualify for affordable housing. It is an issue raised in my constituency office and we should examine it because many people who work and pay rent in one fashion or another find it difficult to come up with deposits. While an SSIA-type deposit savings scheme is part of the motion, it is something we should consider. I point out to the Members opposite that this is an issue I raised in the House on more than one occasion and it was certainly raised at a parliamentary party meeting. There is merit in the idea and it is the type of issue I would like discussed.

Fergus O'Dowd (Louth, Fine Gael)
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Will the Deputy support our motion?

John Curran (Dublin Mid West, Fianna Fail)
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No, I do not support the motion.

Bernard Durkan (Kildare North, Fine Gael)
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Will the Deputy vote on it?

Séamus Pattison (Carlow-Kilkenny, Labour)
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Order.

John Curran (Dublin Mid West, Fianna Fail)
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The Deputies opposite want real debate on the issue but the points they have made in the motion are disingenuous in terms of the progress that has been made. I will engage with the Deputies in debate but I do not support the motion.

Fergus O'Dowd (Louth, Fine Gael)
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The Deputy is talking through his hat.

John Curran (Dublin Mid West, Fianna Fail)
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The progress made is not being recognised. Regarding first-time buyers, we must address the issue of a savings scheme in respect of deposits. There is merit in that idea. That aspect of the motion, which has been raised in the House previously, will be raised again and is an issue that will be examined.

Fiona O'Malley (Dún Laoghaire, Progressive Democrats)
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I commend Fine Gael on tabling this motion. Owning one's own home is most important to every family and individual. Recently, RTE held an on-line poll about the cost of housing. In the comment section one person contributed the following:

I'm 23 years of age. I make €27,000 a year and I've done so for the last two years. I'm single. I don't have rich parents to back me up. The mortgage adviser asked me to call back in two or three years' time. He might have better news by then.

That young man was from Leitrim. That encapsulates some of the difficulties facing us and we should listen to what a young person is experiencing.

The public will be interested to know what the Government has done in this area and I will use the time available to me to set the record straight. It is important that the public recognises that the Government is doing a great deal in this area. We had stated that if we were elected, we would provide good quality, affordable housing through a comprehensive policy to meet the growing housing demands over the period 2002 to 2007. What does that mean? We know the problem. The average house price is now €255,000, and increased by €18,000 in one year. The average house price was €75,000 in 1996.

The effect the housing issue is having on young people is serious. We know from the last census that 42,500 people over 30 live with their parents. I am sure that is not a situation that either the parents or the 30 year olds find the most desirable. We aim to ensure that supply is responsive to the level of demand. We know the demand for housing has spiralled and we must encourage more construction.

The public does not want to hear that the problem is created by our own success. It wants to know what we have done to meet this demand. In 1997, the number of houses built was 38,000. In 2000, it was 50,000. Last year, it was 77,000 and consultants have predicted a similar total in 2005. Those are record construction numbers. That refutes the notion that we are doing nothing.

Séamus Healy (Tipperary South, Independent)
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What about the housing waiting lists?

Fiona O'Malley (Dún Laoghaire, Progressive Democrats)
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Regarding our primary objective to ensure that supply is being responded to, it is clear our policies are working. As a result of the work we are doing, house prices have moderated somewhat but not enough and the problems remain.

I would like to dwell on two areas of concern. The first is the problem of investment properties. Our policies have delivered homes but the increased number of houses are meant to help people like the young man in Leitrim on €27,000 a year. I am concerned about a recent ESRI study which estimated that 12% of the 77,000 dwellings built in 2004 are either holiday homes or are empty. That must be addressed.

The second issue I would like to dwell on is the State provision of affordable housing. It is obvious that increased supply will temper the price rises and help certain sections of society but they will not help everybody. There are those whose annual income is nowhere near the €27,000 per annum of the individual I spoke of earlier.

We spent €144 million on affordable housing in 2000. We spent €266 million last year and while we must continue with our policies to increase housing output, we must also increase the amount the State spends on providing housing. The level of social housing being provided is the highest ever in our generation but it must be kept going at that level. It is envisaged that 12,000 more affordable homes will be completed by 2007, and they must be completed.

I wish to refer briefly to a topic raised when discussing affordable housing for young people, the so-called first-time buyer's grant. That is a misleading title. When I was a first-time buyer, I did not qualify for the grant as the house I purchased was not new. The notion that the grant was what it said on the tin is ridiculous. Another myth which needs to be dispelled is the one which contends that we have presided idly over the economy while allowing the housing problem get out of control. Almost 30% of all homes in Ireland have been built since 1997. A clear strategy has been devised to tackle homelessness. As long as there is one homeless person, there will be one too many.

Fergus O'Dowd (Louth, Fine Gael)
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There are 6,000.

Fiona O'Malley (Dún Laoghaire, Progressive Democrats)
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The issue is not simply one of an absence of shelter, but involves many complex factors.

Arthur Morgan (Louth, Sinn Fein)
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I wish to share time with Deputies Gregory, Finian McGrath, Cowley, Catherine Murphy, Healy and Cuffe.

Pádraic McCormack (Galway West, Fine Gael)
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The Deputy's time is up.

Arthur Morgan (Louth, Sinn Fein)
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It nearly is.

Séamus Pattison (Carlow-Kilkenny, Labour)
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Is that agreed? Agreed.

Arthur Morgan (Louth, Sinn Fein)
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I will restrict my comments to the issues of social and affordable housing and Government inaction on house prices. I will be restricted further in addressing them as it would take all week to discuss them fully. The Government's strategy to tackle the housing crisis which has affected the State for the best part of the last decade is based on the laissez-faire theory that the market will eventually solve all problems. On the basis of that theory, house prices have been allowed to spiral beyond the reach of many ordinary working people in the State. A substantial percentage of the population falls below the affordability thresholds and is not, therefore, in a position to purchase homes. According to the NESC report, up to one third of all new households, or almost 14,000 annually, formed in the period 2001 to 2006 fall far below the affordability threshold. The figure was as high as 42% in some urban areas. These circumstances have developed despite Government denials about the existence and extent of the affordability crisis. The supply of social and affordable housing is not adequate to meet the needs of these people.

The Minister of State, Deputy Noel Ahern, is fond of regaling the House with tales of the number of houses being constructed in the State. Tonight, we have heard Government backbenchers utter the same nonsense. The Minister of State, however, is unable to tell the House the precise percentage of houses being built as second homes. Perhaps he does not want to admit that of the number of houses built each year, the percentage which are second homes outstrips those which constitute social housing by a factor of three to one. Is it right that there is no tax on second homes, the proliferation of which exacerbates affordability problems, especially for people in parts of rural Ireland, including the western seaboard and the south east? Is it right that some people can have two houses without an additional tax liability while others have none?

It is wrong that Government policy does nothing to counteract these developments. Is there not something fundamentally wrong when State policies do nothing to disincentivise the ownership of multiple dwellings while some remain homeless? The activity is incentivised by a significant number of tax reliefs, including mortgage interest tax relief for landlords and the so-called targeted supply subsidies such as sections 23 and 50 tax relief. Will the Government act on the recommendations contained in the NESC report on housing and introduce a tax on second homes? The NESC is not some radical, left wing group, but a Government agency.

The Government's stock response to the house price crisis is that with the current high level of output, balance between supply and demand will be achieved allowing prices to stabilise and affordability problems to be resolved. The Government's view is contradicted by the NESC report which states that the number of people eager to purchase a home but unable to do so under market conditions is unlikely to get smaller. According to the report, any improvement in affordability due to further restrictions in the rate of increase in house prices and the catch-up of earnings relative to them is likely to be more than offset by interest rate rises.

I challenge the Minister of State to bring proposals before the House to meet the housing needs of those on local authority waiting lists who vainly hope to secure one of the few units of social or affordable housing being constructed for those priced out of the housing market. If he has no solution to offer, he should have the dignity to resign.

Tony Gregory (Dublin Central, Independent)
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Ba mhaith liom tacaíocht a thabhairt don tairiscint seo de chuid Fhine Gael i dtaobh na héigeandála i gcúrsaí tithíochta go mbeadh cruinniú práinneach de na páirtnéirí sóisialta agus gur chóir an Rialtas seo a cháineadh de bharr gur theip go hiomlán air freastal ar dhaoine atá ag lorg tithíochta sa tír seo.

I support the motion as it serves to focus our attention on the vital issue of the basic right of all our people to decent living accommodation which successive Governments have failed to honour. The Government has refused to take radical action to address this fundamental right. Most Members will agree that the breathtaking cost of houses and the massive price increases which have spiralled out of control in recent years are completely unjustifiable and demand action. The scandal of homelessness is a black mark on the record of the State as are lengthy waiting lists for local authority housing. Profiteers lurk in the background to racketeer in new house prices and land values while a small number of multi-millionaires control the bulk of development land in the Dublin region.

Such circumstances are unsustainable and unjustifiable and no amount of tinkering with the system can change them. While developers and builders manipulate and control the housing market in a manner which allows them to maximise their vast profits, the number of unfortunate people joining the local authority housing waiting lists steadily increases. The average price of a house in Dublin is well in excess of €300,000 while the latest phenomenon is the increasing number of new housing schemes advertised in property supplements which feature prices starting far above €1 million. While the same property supplements advise investors on the merits of properties in New Zealand, South Africa and Florida, increasing numbers of Irish people see the opportunity to obtain a home move increasingly beyond their reach. The political philosophy of the Progressive Democrats-Fianna Fáil Government which produces this inequality is the most corrupting influence in Ireland today.

Finian McGrath (Dublin North Central, Independent)
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I appreciate the opportunity to address the housing crisis in the State to which the Government must wake up. After eight years in power, people like the Minister of State, Deputy Noel Ahern, should step aside and let someone who has the ability and is up to it get on with the job. His record speaks for itself and the public should be reminded of it and his failure to take action. The average house price in Ireland stands at €255,776 which represents an increase of €18,000 in one year. The price of the average house has increased from €75,000 in 1996 while, according to the 2002 census, 42,000 people aged over 30 live with their parents. Only 315 affordable housing units have been acquired under Part V of the Planning and Development Act 2000 despite the scandal of a 100,000 person local authority waiting list. There are 5,580 homeless people in 3,773 households. These are the issues to be addressed.

We require a change of attitude and policy from the Government. I urge it to implement a package of proposals to help first-time buyers. I urge it to arrange a Dáil debate on changes to the rent supplement scheme and to meet its NDP targets and election promises on social and affordable housing. These are sensible proposals on which it would be better for the Minister of State, Deputy Noel Ahern, to spend his time rather than on plotting and issuing sleazy leaflets about me in Dublin North-Central. If the Minister of State spent more time concentrating on his housing brief, it would be better for the people who want to get a house.

I urge all Members to take housing very seriously and to propose fresh ideas like those I have mentioned which put the issue at the top of the political agenda. I call on the Government to advance the Sustaining Progress initiative on housing and accommodation which has the potential to deliver more than 10,000 affordable housing units. Part V of the Planning and Development Act 2000 must be implemented. These are sensible proposals to assist people with serious housing needs. I urge all Members to reflect on the housing crisis in our wealthy country. I will support the motion when the House divides.

Jerry Cowley (Mayo, Independent)
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While house prices continue to grow, albeit at a slower rate, the demand for social housing is now at its highest level since the formation of the State. The last official record on waiting list figures shows that over 48,000 households are waiting for social housing but this figure is likely to grow after the recent assessment which took place in March.

There is a reluctance to deal with the lack of social housing. The composition of waiting lists may be changing as more smaller households and single people are replacing families on local authority waiting lists. This is a reflection of demographic changes in society. However, just because there are more smaller and single person households should not lessen the housing need of those on the waiting list. Single people also need housing.

The Government constantly argues that social housing output has risen since 2000 but this rise is very small when compared to the increase in private house building for owners and investors. The Government continually praises itself for the continued high levels of private house building as if it had produced this housing itself. The high level of private house building has been achieved by private developers, land speculators and banks, often on the backs of the significant and growing number of new young households that need housing. These are the facts. Although an increased supply in the number of houses being built has reduced the increase in house prices, the reality is that the entry point to become a new home owner is now up to ten times the average industrial wage.

Something can be done to address this. Last year the Government commissioned the Oireachtas All-Party Committee on the Constitution examine property rights. Recently the National Economic and Social Council produced a report which had a series of practical recommendations on social and affordable housing, including recommendations to provide 73,000 new social rented homes up to 2012. There is no urgency in regard to recommendations in these reports. The NESC, which represents the social partners, produced a report but to date this consensus approach has not been reflected by the Government in concrete action.

I call on the Minister to have a debate in the Dáil on this matter and to tell the public what the Government intends to do to help low income groups access housing. Let us see if the Government will actively intervene and provide more resources to local authorities and housing associations to build more social housing like NESC and the social partners agreed, or if it sit on its hands and rely on profit-driven private landlords to fill the gap with the tab being picked up by the State in a significant bill for private rent subsidies which is heading for €350 million this year. This is a case of an open cheque book for private landlords on the back of the poor and vulnerable. The Minister will be aware that more and more small families have to rely on private landlords to be housed. This is not a satisfactory response from the Government and I ask that it be examined urgently.

Catherine Murphy (Kildare North, Independent)
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Given the limited time available I wish to focus on three aspects of the motion, namely, Part V, rent assistance and local authority loans.

Over 3,000 individuals or families are seeking to be housed on the local authority waiting lists in County Kildare. That is in the region of 10,000 people, which is equivalent to a medium sized town. Given the extent of the development that has been occurring in Kildare I was prepared to accept when it was introduced in the first place that Part V might be a reasonable response. It is more than three years since the scheme was introduced and to date it has delivered no more than a couple of dozen apartments and houses. I accepted that a lead-in time would apply, but that is just totally off the wall.

Given that Part V has replaced direct-build as the central response to the housing list, it cannot be allowed to drift in this manner. Local authorities have had a very patchy record and all the Department appears to be interested in doing is complaining about how patchy that record is instead of investigating the reasons for it and addressing them. The stupidity of this approach means that significant amounts of rent assistance is paid to landlords for the additional years that people are lingering on housing waiting lists.

Rent supplement and how it is handled is the greatest poverty trap I have encountered. If one works, one does not qualify for rent assistance. One does not have a choice but to stay at home and in many cases postpone one's working life. I know numerous people who have resorted to tranquillisers because of this, which results in them just drifting along. In most cases taking a job is not an option, especially when one looks at the cost of rent and child care. There must be a change in this approach.

Five years appears to be a typical period for a person to be required to spend on the waiting list. Not only are we making people postpone their working lives, we are ensuring that they live in poverty. The vast majority of people on waiting lists have children. We are also losing out on their skills and the contribution they could make to the economy and in terms of personal development. The current approach does not make social or economic sense.

For those lucky enough to be allocated an affordable house the limit for annuity loans from local authorities is ridiculously low at €165,000. It is impossible for people to make the breakthrough. Where I live affordable houses cost around €200,000, if they are available at all. This problem exists in every county. In excess of 100,000 individuals are on the waiting list. That is the equivalent of the population of three counties, Carlow, Leitrim and Longford. If that is not a problem I do not know what is.

Séamus Healy (Tipperary South, Independent)
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The most important thing the Government could do in response to this motion is to accept that a housing crisis exists. The housing crisis is a damning indictment of the abject failure of the Government to deal with the housing situation. It is a crisis when 70,000 families are on local authority housing waiting lists. It is a crisis when one has, as is the case in south Tipperary, a 40% increase in the number of families on local authority waiting lists since the Government came to power in 1997. It is a crisis when the average house price has risen from €75,000 in 1997 to €255,000 this year. It is about time the Government and the Minister dealt with it as such. I call on the Government and the Minister to grasp the nettle, accept we have a housing crisis and do something about it as a matter of urgency.

Ciarán Cuffe (Dún Laoghaire, Green Party)
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I wish to raise another housing issue that has not been addressed amidst all the hullabaloo in the past ten days about rural planning guidelines, that is the problem of affordability and housing in urban areas. Unless one is lucky enough to own a site or for one's family to own a patch of land it is very difficult for those living in villages, towns and cities to provide housing for themselves and their families.

There is a real blind spot in Government policy in terms of the lack of recognition of the problems of housing in urban areas. For every site and every house that is built in the open countryside there is a significant level of frustration building up among people who want to house themselves and their families in urban areas. The Government could be doing more. It could provide sites and well managed plots of land close to the heart of our villages, on under-used land in our cities, or on surplus institutional land in towns.

There is a significant amount of land, not out in the open countryside but close to schools, pubs, shops and to the heart of our communities that could have well designed schemes built on it. I appeal to the Government to spend more time looking at what can be achieved close to the heart of where communities want to be. I urge the Government to look again at Part V and to put back in the provisions that were filleted out of the 2000 Act in late 2002. The provisions taken out would have provided enough funding to give people roofs over their heads. There is now only a smattering of housing coming up under Part V. As a previous speaker pointed out, the argument that it takes time is good enough for one or two years but not three years on and seven years after the Government came to office.

The Government must do more with the provisions of the Planning and Development Act. It must provide a spectrum of housing options for people and allow for flats to be sold. People are living in local authority accommodation whose parents and grandparents grew up in the flats in which they live. These people do not have a chance to buy them outright. It makes them uneasy and unhappy that they are looking at new apartments being built to the left and right of them while they know they have no chance of buying the roof over their head. People should be given that right, whether it be in Mounttown, Ringsend or the north inner city. Those people wish to be the heart of their communities and the Minister is not doing enough to allow them to buy their flats. I look forward to provisions being put in place to allow people to buy their homes.

The Minister must also do more in regard to quality. I foresee that in a couple of years the European Union will again take a case against Ireland because the Minister is dragging his heals on the building performance directive. Why does he not introduce it from 1 January next year? Why does he not give all new homes as well as those that come on the market an energy rating?

Noel Ahern (Dublin North West, Fianna Fail)
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Will the Deputy get the agreement of Members behind him for that?

Ciarán Cuffe (Dún Laoghaire, Green Party)
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Fridges have an energy label on them. The Minister of State should provide the same for housing. Why not provide grants for greenhousing solutions? Why not provide and foster the innovation that people want to provide? Instead we get a dumbing mediocrity when it comes to the Government's housing policy. While the Minister of State often boasts about the record number of completions, 70,000, 80,000 or maybe 90,000 next year, the proportion of local authority and affordable homes is at a record low and he must do something about this. He owes it to people who have been on housing waiting lists for many years.

I have one last plea. The Minister of State should put in place a joint housing list for all the Dublin local authorities. A bureaucracy exists that can be very difficult for people to overcome. They deserve the right to be considered for housing anywhere in the greater Dublin area. I would like the Minister of State to put that in place without delay.

Noel Ahern (Dublin North West, Fianna Fail)
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They do not need my approval.

Pádraic McCormack (Galway West, Fine Gael)
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I propose to share time with Deputies Olivia Mitchell, Durkan and Kehoe.

Séamus Pattison (Carlow-Kilkenny, Labour)
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Is that agreed? Agreed.

Pádraic McCormack (Galway West, Fine Gael)
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Deputy Fiona O'Malley, before she left the Chamber, urged the House to consider the dilemma facing young couples. This is a problem she should face too because her party is in Government. It should certainly realise the dilemma facing young couples. The reality of this was brought home to me when a young couple with three children came into my office recently. They have been seven years on the local authority waiting list in Galway city and are still unable to get a house. They pay €200 a week for modest rented accommodation and because the husband works, they do not qualify for rent supplement. Despite this, the local authority is still unable to house people who find themselves in that dilemma. The housing officer said that there were people with four children and more who were on the waiting list longer and would have to be housed before them.

On researching the situation, I found that more than 100,000 people are on local authority waiting lists. The Government does little to alleviate the situation and, if anything, its policies make matters much worse. It has abolished the first-time buyer's grant, increased VAT by 1% on housing building materials and imposed development charges, which alone added €15,000 to the price of a house. The average price of a house in Ireland is now €255,776, an increase of around €18,000 in one year. The Government bears the main responsibility for this. Since this Government came to office, the average house price has increased by approximately €160,000. It has more than doubled in the lifetime of the current Fianna Fáil-Progressive Democrats coalition. Some 5,500 people in Ireland are homeless.

In the recent budget an attempt was made to alter stamp duty for first-time buyers, but it was not enough to take them out of the tax net. Fine Gael, in the next Government, will abolish stamp duty on second-hand houses up to a value of €400,000. The Government has taxed housing out of the reach of first-time buyers and young couples. Between development levies and taxes, a major proportion of the price paid for a house is directly taken by the Government. The Construction Industry Federation has published figures which show that the Government takes more than €100,000 out of the housebuyer's pocket with every house purchased.

This week in the Dáil, the Government voted to pass the Second Stage of the Disability Bill 2004 against the express wishes of all groups representing people with disabilities as well as the wishes of Fine Gael and other Members of the Opposition. In a typical arrogant manner it ignored the strong lobby against this Bill in its present form. A similar Bill was withdrawn under pressure before the previous general election on the promise that it would deliver rights-based legislation. The Government has once again deceived and let down people with disabilities.

I want to refer to the attitude of councils towards applications for the disabled person's grant and others and the red tape and delays involved. Some 90% grant aid is available for the disabled person's grant, but only 60% of that is refundable from the Government. In many cases that I have witnessed, because of the red tape, an invalid person who required a downstairs bedroom or bathroom and shower in a two-storey house died before the work was completed. That is scandalous and the Government has allowed it to continue.

This week the Minister for the Environment, Heritage and Local Government, Deputy Roche, relaxed, as he termed it, the regulations for one-off housing in rural areas. This is a sham. The senior planning officer in County Galway told me it would make not one iota of difference.

Batt O'Keeffe (Cork South Central, Fianna Fail)
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Ochón, ochón.

Pádraic McCormack (Galway West, Fine Gael)
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I dealt with a simple case last week in an isolated area of Connemara involving an old lady living in a dilapidated house attached to a business. The business and the house were left to her son. The family were trying to provide a two-bedroomed house for the mother in an area slightly away from the business, which is a public house, because of the noise, yet the planning officer could give me no hope that permission would be granted. All that family wanted to do was——

Batt O'Keeffe (Cork South Central, Fianna Fail)
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Put it in as part of the development plan.

Pádraic McCormack (Galway West, Fine Gael)
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——to keep the mother in the local community. Instead of that she may have to go into a nursing home. That is not the policy we should pursue for housing. I would like the Minister to spell out what councils are doing in this regard.

A fully integrated policy should be adopted to tackle homelessness. This should include measures to prevent people from becoming homeless as well as provisions for those already without a home. Fine Gael opposes the Government's six month rule on rent supplements and all other welfare cuts that tend to drive more people further into poverty and homelessness.

Olivia Mitchell (Dublin South, Fine Gael)
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I support the motion tabled by my colleagues. I will confine myself to one problem which is relevant to my constituency and which I imagine is also increasingly relevant in other urban constituencies, namely, the ownership and management of property by companies, whether for gated communities, apartments, small housing developments or duplexes. This is an area of uncharted waters in Ireland. Problems are emerging already from the number of contacts I have had on this issue in my constituency. It is a matter that should be dealt with now before it reaches crisis proportions.

It is mainly about ensuring that management charges are paid and kept for the purpose for which they were intended. A major change has occurred in the scale of apartment ownership. It is not an entirely new phenomenon. We have had apartments in the past, but they were owned primarily by landlords who had an income against which to offset management charges. The situation is now quite different in that a much broader spectrum of the population, including many first-time buyers and young families, are moving into these apartment blocks. There is a need for standardisation of leases so they can know what they are getting into. Something similar to the residential tenancy board contracts that are produced for landlords and tenants should be available for apartment block owners. They should have some idea not alone of their own but of their joint responsibilities. That is where the concept falls down and there is an enormous information deficit.

Maintenance charges now resemble the old rates bills and are regarded with the same dread, taking a large chunk of a homeowner's money. The lack of understanding of what they are for only adds to the tension associated with them. Maintenance charges for starter apartments can be as high as €2,000 a year, placing enormous pressures on young home owners. House buyers are being duped by elaborate designs, such as fountains and wooden cladding, that look lovely and sell the apartments quickly but are high maintenance features. It is never properly explained to the owners that they are responsible for maintaining them. A property's value can rapidly fall as the owners cannot meet the maintenance costs associated with these features.

When owners cannot pay the maintenance charges, the exterior of the building falls into disrepair, making them unpleasant places in which to live and difficult to sell. However, there are other pitfalls such as those associated with insurance responsibilities held for common areas. Many owners do not realise that if their building is not properly insured, the mortgage holders can foreclose on the mortgage. If uninsured premises go on fire, those who withheld their management charges are responsible not only for their own building but the apartments of others and can be sued by other owners. There is also the added problem of public liability. Those who cannot meet their management costs increase the burden on others. The sinking fund, a precautionary fund primarily for dealing with major structural repairs, is dipped into as the burden becomes too great. If that is frittered away on day-to-day maintenance there will be endless problems for those affected apartment blocks in the future.

Problems associated with property management companies are beginning to arise. Many disputes are due to misunderstandings as to what property management companies are about. They are working on behalf of those who own the apartments. Matters can be simplified for apartment owners. I accept the potential exists for homeowners to be the managers of their buildings. However, the exigencies of company law make this difficult for small complexes and can put unnecessary responsibilities on them.

New legislation is required to ensure the sinking funds for long-term structural repairs are protected. The Minister for the Environment, Heritage and Local Government must promote standard leases and give the maximum protection and certainty to buyers. Almost all homes being built in south Dublin are apartments; 1,600 received planning permission last year alone. Nationwide, apartments make up one fifth of all house units built. Apartment blocks can provide a pleasant living environment with a good social mix, but only if the standard of the property is maintained. This can only be ensured if there is regulatory and legislative change and before crises emerge.

Bernard Durkan (Kildare North, Fine Gael)
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I was saddened to hear from the Government benches long apologies and insinuations that the Opposition does not understand the housing problem. It is the Government that has not understood this problem. The saddest part of this is when we are told record numbers of houses are being built when they are being bought by financial institutions, investors and others who rent them back to the unfortunate people who are ultimately paid by the supplementary welfare system. To heat more coals on the heads of those in need of a home, the Government last year decided to curtail those welfare payments.

Since the Government came into office, house prices have risen. There has been much waffle and hot air from the Government about building new houses. However, there has been no action. Some Government Members explain this away by claiming there are different problems, such as a growing population. We always had a growing population. In the mid-1980s when there was allegedly no money in the State and those on the other side of the House claimed they had the answer for everything, my local authority, in one year, provided 600 houses for people on waiting lists. This was a time when the list comprised 1,000 people. Now there are more than 3,500 families on the housing list but only a dribble of social housing being provided.

Recently, I tabled a parliamentary question on the landbanks available to the local authorities for social and affordable housing. The Minister for the Environment, Heritage and Local Government replied that the information was not available. That is gross negligence on the Government's part. There was never an intention to resolve the housing problem. It has been raised in the House for the past seven years, yet not one attempt has been made to resolve it. However, now coming near the general election, the Government will put its hands together to pretend to the public it is addressing it. "Too late" is the answer.

Paul Kehoe (Wexford, Fine Gael)
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I congratulate my colleague Deputy O'Dowd for tabling this motion. I am maddened that those Members who will vote with the Government amendment tonight are the ones who gave out about the former Minister for Finance, Mr. McCreevy, for abolishing the first-time buyer's grant. Those Members now have an opportunity to re-introduce the first-time buyer's grant. The Minister of State at the Department of the Environment, Heritage and Local Government, Deputy Batt O'Keeffe, should not nod his head. I have plenty more to say on this and he will be fed up with nodding his head when I am finished.

Batt O'Keeffe (Cork South Central, Fianna Fail)
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We introduced several measures in the last budget.

Paul Kehoe (Wexford, Fine Gael)
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The housing list in County Wexford gets longer by the day. First-time buyers cannot afford to buy homes because of the abolition of the first-time buyer's grant and increases in VAT and development charges. These are stealth taxes on every young house buyer. Last week, the Government had the audacity to publish new planning guidelines. One would think it had produced the Bible.

Batt O'Keeffe (Cork South Central, Fianna Fail)
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Probably next to it.

Paul Kehoe (Wexford, Fine Gael)
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I am glad the Minister of State said so because the Minister of State at the Department of Agriculture and Food, Deputy Browne, went on Wexford local radio to rubbish the guidelines. Does the Minister of State, Deputy Batt O'Keeffe, understand the significance of this?

Batt O'Keeffe (Cork South Central, Fianna Fail)
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The Opposition cannot understand the benefits of the guidelines.

Paul Kehoe (Wexford, Fine Gael)
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The Minister of State, Deputy Browne, claimed the new guidelines will make no difference. On Monday afternoon I telephoned a senior planner in Wexford County Council regarding 13 pending planning applications. I know they will not get approval due to the hypocrisy within the planning departments. However when I asked the senior planner if the new guidelines might make a difference, he replied "no". I seldom agree with the Minister of State, Deputy Browne, but I agreed with him that morning. I hope the Minister of State Deputy Batt O'Keeffe tells the Minister for the Environment, Heritage and Local Government that the Minister of State, Deputy Browne, rubbished the new planning guidelines.

Batt O'Keeffe (Cork South Central, Fianna Fail)
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The Minister of State, Deputy Browne, would not do that.

Pádraic McCormack (Galway West, Fine Gael)
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He should be sacked.

Paul Kehoe (Wexford, Fine Gael)
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Many Fianna Fáil backbenchers felt like rubbishing them but do not have the neck to do so. The guidelines are only a bloody vote-getter.

Pádraic McCormack (Galway West, Fine Gael)
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Pretence.

Paul Kehoe (Wexford, Fine Gael)
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Deputy McCormack spoke about the disabled person's grant. I am aware of applications for that grant in County Wexford that are three to four years old. One dates from a month or two before the general election in 2002. The elderly couple concerned are in failing health. By the time they get the disabled person's grant it will be no good because they will have gone to their eternal reward. That is the sad reality of what is happening to the disabled person's grant scheme not only in Wexford but throughout the country.

The motion calls on the Government to meet its national development plan targets and election promises on social and affordable housing and to convene a crisis meeting with the social partners to address the issue. I ask the Government to support the motion but its Members will vote against it tonight. They will not agree with the motion here but when they return to their constituencies they will agree with it.

Batt O'Keeffe (Cork South Central, Fianna Fail)
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The Minister of State, Deputy Noel Ahern, confirmed last night that there is a remarkable record of achievement by this Government with regard to housing. He clearly demonstrated that housing is a priority for the Government. There is a clear and comprehensive housing strategy which is designed to increase supply. We are increasing supply.

We are also increasing access to housing for lower income groups and improving the housing conditions of local authority tenants, the elderly, the homeless and people with disabilities.

Pádraic McCormack (Galway West, Fine Gael)
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Who wrote that speech?

Batt O'Keeffe (Cork South Central, Fianna Fail)
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I will outline the facts.

Bernard Durkan (Kildare North, Fine Gael)
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The Minister should sue the person who gave him that script.

Batt O'Keeffe (Cork South Central, Fianna Fail)
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The Government accepts that housing supply is the key to keeping house prices down. It is working to that end by investing in infrastructure, using land effectively through higher residential densities and streamlining the planning mechanisms. It is no surprise, therefore, that there was no acknowledgement by the Opposition during this debate of the considerable strides made in the housing sector in recent years.

Paul Kehoe (Wexford, Fine Gael)
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There are no surprises to pull out of the hat.

Batt O'Keeffe (Cork South Central, Fianna Fail)
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Measures were introduced to boost overall housing output. There were almost 77,000 completions in 2004 compared with a mere 22,000 ten years ago.

Bernard Durkan (Kildare North, Fine Gael)
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Who bought them?

Batt O'Keeffe (Cork South Central, Fianna Fail)
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The year 2004 was the tenth year to show a massive increase in housing output. The Residential Tenancies Act 2004 marked an important step in developing and modernising the private rented sector. Substantial resources have also been invested in social and affordable housing.

Paul Kehoe (Wexford, Fine Gael)
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The Department has brainwashed the Minister.

Batt O'Keeffe (Cork South Central, Fianna Fail)
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We are conscious of the problems of affordability faced by people——

Bernard Durkan (Kildare North, Fine Gael)
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Just about conscious.

Batt O'Keeffe (Cork South Central, Fianna Fail)
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——and we will continue to work to ensure house prices come down and more land is made available. That is happening as we speak. The Department is not idle. It is currently examining the NESC and other recent reports. It is paying considerable attention to the proceedings of the All-Party Oireachtas Committee on the Constitution on private property, which has a bearing on the housing sector. It is considering new measures that will be desirable both in the short and medium terms. These will shortly come before the Government.

Much was made last night of the level of outputs being achieved under social and affordable housing programmes. We are currently delivering numbers of social and affordable housing that have not been seen in a generation.

Bernard Durkan (Kildare North, Fine Gael)
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That is not true; it is rubbish. The Minister should sue the guy who wrote that script.

Batt O'Keeffe (Cork South Central, Fianna Fail)
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There is a total housing provision of €2 billion and this will enable the housing needs of in excess of 13,000 households to be met through the various social and affordable housing measures.

Bernard Durkan (Kildare North, Fine Gael)
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Does the Minister believe that?

Batt O'Keeffe (Cork South Central, Fianna Fail)
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Further advances in meeting long-term housing needs are expected this year from the new rental accommodation scheme. Contrary to what has been said by some Deputies——

Paul Kehoe (Wexford, Fine Gael)
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What about the homeless?

Batt O'Keeffe (Cork South Central, Fianna Fail)
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——it should be clarified that social housing output is not delivered solely by local authorities. We have moved on.

Paul Kehoe (Wexford, Fine Gael)
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What about homeless people?

Batt O'Keeffe (Cork South Central, Fianna Fail)
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We have developed and expanded the voluntary and co-operative housing sector in recent years to a point where over 1,600 units of accommodation were provided last year for people in need. It is a record for the sector and is almost three times the output levels achieved by the rainbow Government.

Bernard Durkan (Kildare North, Fine Gael)
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The Government has an appalling record.

Batt O'Keeffe (Cork South Central, Fianna Fail)
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The Government is fully committed to continuing the supports for this sector. It is making a substantial contribution to overall housing output.

The Opposition went to great lengths in its attempts to pour cold water on the likely impact of the rural housing guidelines which were launched last week.

Bernard Durkan (Kildare North, Fine Gael)
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That is another whitewash.

Batt O'Keeffe (Cork South Central, Fianna Fail)
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The guidelines are explicit in a way that they never were previously.

Paul Kehoe (Wexford, Fine Gael)
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Will the Minister give way for a question?

Batt O'Keeffe (Cork South Central, Fianna Fail)
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They are a massive step forward in defining what are reasonable proposals and suitable sites. They go significantly further than both the 1997 sustainable development strategy and the national spatial strategy in providing the policy framework for local authorities to plan effectively for their areas.

Paul Kehoe (Wexford, Fine Gael)
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What about the comments of the Minister of State, Deputy Browne?

Batt O'Keeffe (Cork South Central, Fianna Fail)
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My advice to Opposition Members is that they tell their councillors that the development plans and local area plans are being implemented and urge them to ensure that their local authorities will put the guidelines in place.

Paul Kehoe (Wexford, Fine Gael)
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The Minister should say that to his party Members, including Deputy Browne.

Batt O'Keeffe (Cork South Central, Fianna Fail)
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The Opposition also took issue with the long-standing system of development contributions. The Fine Gael Party was at one with the Government with regard to the Planning and Development Act and the transparency and accountability it would yield. Suddenly, Fine Gael is questioning the contributions. These contributions will ensure the provision of playgrounds, community facilities and the other facilities that are crucial for a community.

Rory O'Hanlon (Cavan-Monaghan, Ceann Comhairle)
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The Minister must give way. I am obliged to call Deputy Perry.

Batt O'Keeffe (Cork South Central, Fianna Fail)
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Once again, as they did before the last election, Fine Gael Members are defining Fine Gael policy on the hoof, which cannot be delivered in the long term.

John Perry (Sligo-Leitrim, Fine Gael)
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I wish to share time with Deputies Ring and O'Dowd.

Rory O'Hanlon (Cavan-Monaghan, Ceann Comhairle)
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Is that agreed? Agreed.

John Perry (Sligo-Leitrim, Fine Gael)
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On the issue of housing, the Government has failed on all accounts. This includes not only the astronomical cost of buying a house but also homelessness, the supply of social housing and planning. The State gets €50,000 from every new house that is built. The greatest profit margin is secured not by the developer but by the Government. A couple buying a new house is, in effect, giving the State €50,000 while the first time buyer's grant has been abolished.

I recently raised with the Government the badly needed 500 new local authority houses in County Sligo.

Batt O'Keeffe (Cork South Central, Fianna Fail)
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Why not mention the exemption in the budget or the tax relief in the previous budget?

John Perry (Sligo-Leitrim, Fine Gael)
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Sligo has a young population and it needs to encourage people to live in the region. Thankfully, people are willing to live there but there is no social housing available for them. Those who can afford to buy houses find themselves crippled with enormous debt and unable to cope with the burden of indirect taxation which this Government has imposed.

The Government is responsible for not controlling house prices which, in some regions, are increasing at a rate of €20,000 per year. Its mismanagement has resulted in a major crisis. In 1996, when Fine Gael was in Government, the average price of a house was £75,000 nationally and £88,000 in Dublin. House prices are expected to rise annually——

Batt O'Keeffe (Cork South Central, Fianna Fail)
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At that time the economy was on the floor.

John Perry (Sligo-Leitrim, Fine Gael)
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——but they are now rising at an astonishing rate.

Bernard Durkan (Kildare North, Fine Gael)
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We know who brought it down.

John Perry (Sligo-Leitrim, Fine Gael)
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This year a house in Dublin will cost €340,000 while in other parts of the country it will cost €220,000. That is a rise of €20,000 per year, which is unbelievable. Twenty years ago people had to leave this country because they could not find work. Thank God, that is no longer the case.

Batt O'Keeffe (Cork South Central, Fianna Fail)
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Good management.

John Perry (Sligo-Leitrim, Fine Gael)
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However, this Government has overseen a position where people simply cannot afford to buy a house. Young people have no option but to live at home until they are in their 30s and earning a wage which will allow them to buy a house. Otherwise, they must throw money down the drain on rented accommodation.

The changes which have been implemented have been too few and too late. The €317,000 stamp duty threshold is lower than the average price of a house for a first time buyer in Dublin. What was the Minister, Deputy Cowen's, intention when he introduced this change? While a change in the threshold is welcome, a change which would affect people in a more helpful way would have been more welcome.

Only 187 affordable housing units were completed last year. Figures for this year are elusive so we can only presume there will not be a major change in that figure at the end of 2005, regardless of what the Government says. Talking will not put a roof over people's heads. According to the Higher Education Authority, 1,000 students are living in hostels. It is unacceptable that the Government will refer to the need for a highly educated population but will not support students by putting a roof over their heads. We have the wealthiest economy in Europe, but people are still living on the streets. A total of 1,140 children are homeless, which is horrific. The Government must stand up and be accountable for this.

The national spatial strategy continues to be undermined at every level. We need to put a strategy in place that will not just make do for a few years, but will be sturdy enough to support Ireland for generations to come. With a growing population, planning is imperative yet we have a lack of planning from the Government. It should be truly ashamed of this. People have to wait on lists for affordable housing, yet they cannot avail of such housing. It is impossible for so many young people today to get on the housing ladder.

Michael Ring (Mayo, Fine Gael)
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The Minister of State, Deputy Batt O'Keeffe, was a mighty man when he was on the backbenches. You are now polluted with power having worked with officials in the Department.

Rory O'Hanlon (Cavan-Monaghan, Ceann Comhairle)
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The Deputy must make his remarks through the Chair.

Michael Ring (Mayo, Fine Gael)
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The Minister of State is polluted by power. He is intoxicated with power.

Batt O'Keeffe (Cork South Central, Fianna Fail)
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I am supposed to be environmentally friendly over here.

Michael Ring (Mayo, Fine Gael)
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The Government is not living in the real world. Ministers have lost touch with their constituents. The minute the Minister of State got his car and was driven around, he lost control of himself. When he was over here he had all the answers, yet over there he has no answers.

Fianna Fáil was always the party of the builders. The builders fall over themselves to get into the camp in Galway to hand over money to the party. They are telling the party that they are giving over the money so that houses are not built. That is what they say to the young people of Ireland. The houses must not be built so that the builders can control the market and the prices and they can give Fianna Fáil more money. Yesterday, I listened to a presentation by the Society of St. Vincent de Paul on social housing. I was told that there were 6,000 houses built last year for social housing, when the Government promised three times that number. The Government has let down the poor and the weak.

When it had an opportunity to make the builders hand the land over to the local authorities, the Government rushed legislation through the Dáil on Christmas week and guillotined the Bill to make sure that the builders would be protected for the Galway races. The builders then could give more money to Fianna Fáil, and that is what is going on. These are the vested interests that are dictating the construction of houses in Ireland. The Government is not doing so because it has handed over control to the builders. I worked as an auctioneer and I know that housing is all about supply and demand. If one controls the supply, there is no problem. The Government and the builders are controlling the supply. It is happening in my area. Builders from the Fianna Fáil Party are buying the first, second and third field so that they can control the housing market for the next 30 years. They will dictate how many houses are built every year and at what price.

The Government parties are the greatest robbers of all. Young people trying to start out are paying big money for sites and to builders. Then they have to pay crippling taxes to the Government. That is a disgrace. If the Government parties were serious about housing, they would give young people the opportunity and would not charge them any tax. They would give them a tax rebate if they were serious about the housing market, but they are not. They are serious only about the builders who have controlled the market for too long.

Batt O'Keeffe (Cork South Central, Fianna Fail)
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Does the Deputy ever stop on occasion and look at the facts?

Michael Ring (Mayo, Fine Gael)
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The Minister of State had all the answers when he was on the backbenches, but he is now polluted by power. It has gone to his head and he is now talking like Ministers who have been there for ten years. I thought that would never happen to the Minister of State, Deputy Batt O'Keeffe. He disappoints me. I know he waited a long time and he wants to hold on to the job. I do not blame him for that, but he should try to do something for the young couples in this country who want a home and forget about the guys who can afford it. He should forget about the millionaires who are using this country as a holiday home. It is time the Government dealt with this problem. We are aware of the problems and the answers, and it is up to the Government to deliver the answers. It must forget about the vested interests and look after the young people who need a home.

Take the example of the disabled person's grant. I am tired of people coming into my clinic about this. The Minister of State passed a remark to my colleague, telling him to go back to the local authority. When people could speak up in local authorities, the Government got rid of them because it knew that we knew what was going on. County managers come to Dublin every week to meet the Minister for the Environment, Heritage and Local Government. The managers have said that they do not want Oireachtas Members on councils because they know too much.

Batt O'Keeffe (Cork South Central, Fianna Fail)
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That does not say much for Fine Gael councillors.

Michael Ring (Mayo, Fine Gael)
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The Government has taken out the people who knew something about it.

Rory O'Hanlon (Cavan-Monaghan, Ceann Comhairle)
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I am reluctant to intervene, but the Deputy's time has concluded.

Michael Ring (Mayo, Fine Gael)
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That is a pity because I was only getting going.

Fergus O'Dowd (Louth, Fine Gael)
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This has been a very lively debate and I welcome the sincere contributions made. While most of them have been made by the Opposition, there has been a meeting of minds on some issues. There is a real need to debate housing and I hope that the Government provides more time to discuss this issue at a later date.

If we had a proper spatial strategy, we could plan the development of our country. If the Government placed industry in the towns around Dublin and around the country, we would be able to build houses for a cheaper price in those areas. The price of housing in Dublin has now gone out of control. What is possible to do in towns in not possible to do in Dublin. A house that cost €300,000 to buy on 1 January 2005 is expected to cost €322,000 by the end of the year. That represents an increase of approximately 7%.

Noel Ahern (Dublin North West, Fianna Fail)
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Salaries go up as well.

Fergus O'Dowd (Louth, Fine Gael)
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What about savings? How will someone get an extra €22,000 on 1 December when that person cannot afford the house on 1 January? This issue is at the core of Fine Gael policy. We are asking the Government to introduce a special savings scheme, like the SSIA, which will help young people who are saving to buy a home. That is the kernel of our problem. It would cost €50 million in one year. Under the scheme, first-time buyers would receive €1 for every €3 saved, provided those savings are used for a deposit on a house. No tax or interest would apply and the recipient must show regular monthly savings for a minimum of two years. The scheme would operate for both new and second-hand houses.

Regardless of changes in the market and how our parties differ politically, young people today cannot buy a house of their own. They can least afford it in Dublin city. The Minister of State spoke last night about areas where starter homes were available for €140,000. These houses are very rare indeed — one would not get a garage for that money in Dublin.

Noel Ahern (Dublin North West, Fianna Fail)
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There were fine homes sold for that price near Drogheda.

Fergus O'Dowd (Louth, Fine Gael)
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I am not saying that these houses do not exist, but the average price is double that. It would be great if they stayed at that price, but it is not controlled by the Government at this stage. It is unacceptable that the average house price in Dublin city is far beyond the means of the ordinary person. I challenge the Minister of State to introduce such a savings scheme to help young couples buy a house of their own.

Another issue that has not been addressed by the Government is social and affordable housing. It is estimated that 77,000 houses will be constructed this year. According to the NESC report's figures, which were published today by AIB on the web, one third of purchasers of these houses will buy a house for the second time. The Minister should do a deal with the construction industry, which employs more than 250,000 people, so that it would meet the Government's demand for social and affordable housing. The requirement for people in this category will be between 0.5% and 1.2% of the 77,000 homes under construction this year. As demand for housing drops, the Minister should do a deal so that when houses are built, the Department will purchase them at a price that people can subsequently afford. That is what must happen. It is the only future for social and affordable housing.