Cyprian Brady (Fianna Fail)

Fine Gael would rather talk about anything but housing. The Minister of State has pointed to some of the causes of the problems in this area. There is unprecedented demand for housing, the population has increased and demographic changes have occurred. The change in people's incomes must be taken into account as must interest rates and the choices people make now. We must also consider the changing nature of what constitutes a family. Senator McCarthy mentioned single people. There are changes happening with which we must keep up. The Government has been successful in accomplishing this through huge investment, as the Minister of State has pointed out.

This is the ninth successive year of growth in the housing industry. I see it every day in the area of Dublin in which I work. Dublin's north inner city in particular has seen unprecedented building of social, affordable, sheltered and private accommodation. There is a complete mixture across the board. The Minister of State is particularly aware of the Respond housing co-operative at the East Wall where some 150 units of social and affordable housing have been developed. The St. Pancras development turned the blackspot at St. Joseph's Mansions in the north inner city into a flagship project. People come from all over Europe to see it and Dublin City Council uses it as a model.

The supply of housing influences prices. During the period of exceptional growth which this and the previous Governments presided over, demand has grown almost in direct proportion to the increase in people's spending power. Low taxes, low interest rates and almost full employment are bound to put pressures on the system. Previous speakers mentioned the 1980s. I bought a house in 1980 and my wife and I both had to work to be able to afford it. In fact, I had to take a second job. Things have not changed. Some studies have shown that when incomes, tax rates and inflation are taken into account, house prices have remained the same in relative terms. The Opposition appears to disregard this point. Even now, first-time buyers account for a sizeable proportion of the housing market.

We come from a culture in which home ownership has always been important, but that is changing. The most startling figure in the Central Statistics Office survey shows that 62% of home owners owe nothing on their houses. They own their houses fully. Why is it a surprise, when there is such growth in the country, that people are looking for investment properties? With 62% having no mortgage on their houses, why would they not do so? This phenomenon should not be a surprise to anybody.

The Minister of State also pointed out that the supply of building land and the identification of sustainable sites is crucial for the future. This has been taken into account. He also mentioned the all-party committee and the suggestion regarding compulsory purchase orders plus 25% on land. I endorse this move.

If Senator Bannon had been at the meeting of the Joint Committee on the Environment and Local Government yesterday he would know that the three groups representing the homeless which attended, including the Homeless Agency, the Society of St. Vincent de Paul and Threshold, congratulated the Government on its policies and strategy. They said they are working to reduce homelessness. The most startling change that has taken place, particularly now that there are many voluntary housing organisations, is that these groups are now considering prevention of homelessness and working on the end of the cycle of homelessness, in which people can move on to permanent sustainable housing, whether provided by the local authority or privately. There is now much co-operation among local authorities, health boards and the private rental sector. The Residential Tenancies Bill will be warmly welcomed by all the voluntary agencies.

The statistics of the Homeless Agency indicate that more than €60 million has been spent in this area. In 2000, we spent €8 million on homelessness in general. We will spend €24 million in 2004. That is a massive increase. Even the voluntary agencies involved must accept that the strategy that is being followed, while it will be reviewed, has to a large extent worked. The ultimate aim of the strategy was to eliminate homelessness by 2010. All the agencies involved accept that we have made major progress in this area. There is more work to be done at the beginning and the end of the cycle, but these problems are being tackled.

Listening to some of the comments made earlier, one might imagine that developers are invaders from outside the country——