Michael Finucane (Fine Gael)

I am pleased to speak on the Bill. I recall the raging debate in the Dáil on this issue. The proposal to allocate 20% of a housing development for social and affordable housing was regarded as a controversial proposal. I remember the then Minister being criticised for it at dinner dances held by the building industry. I recall reading in the federation magazines about what was regarded by the building industry as a draconian measure which would not work. I remember the then Minister saying that, as far as he was concerned, this was the pillar of the legislation and he was determined to make it work because of the crisis that existed in local authority housing at the time. The proposal has not worked. Some 300 houses have been built in two years.

In the local authority area where I live, 25 houses have been built in Newcastle West, under the affordable housing concept, by a developer who co-operated with the council. I know many of the people buying these houses and they are thrilled. They work for a living, but are unable to obtain the necessary excessive mortgages. This affordable housing concept gives them a chance.

Most builders were opposed to the concept and I am sure they exerted considerable pressure in the past two years. It has long been recognised that they form the backbone of contributions to the Fianna Fáil organisation. I am sure they made their sentiments known to the Government on this issue, particularly the fact that they wanted the provision changed. That change is happening in the form of this legislation.

There is one aspect of it which is contradictory. The justification given for the abolition by the Minister of the first-time buyer's grant of €3,800 was that it was being trousered by builders. I thought it was insulting to many people I represent in my constituency because where one-off houses were being built, they would obtain competitive quotes from local builders and, when the house was built, the €3,800 was invaluable to them.