Joe O'Reilly (Fine Gael)

I wish to share time with Senator John Paul Phelan.

I welcome the Minister of State. There has been too much reliance on the private housing sector as the engine of economic development and a lack of foresight on the part of Government in not anticipating the current lack of need for housing. Not only did the Government not anticipate this but it failed to face up in time to the fiscal realities this presented.

That said, a critical recommendation to the Government is that people who will be dislocated in the private housing sector should find employment in construction. There is no logic in putting people on the live register, with its involved costs and the loss of direct and indirect taxation to the economy.

I will make a few brief points. The affordable housing scheme could be very well exploited now to create jobs in construction. This scheme is the most revolutionary, radical and wonderful scheme we have had in recent times. If people can buy an affordable house at an economic price — basically the price of the site and construction — a family would have a viable chance to buy a home. The potential of affordable housing, as both a method of absorbing construction workers and giving cheap homes to people, must be fully exploited. Immediate efforts should be put in place to increase the number of affordable houses produced annually as there will be an uptake from people.

It is interesting to look at the statistics in that regard, which show that every year since 2004 there has been an increase in the uptake of affordable housing, right up to 1,600 last year. The need for affordable housing will be even greater in the present economic climate and because banks are refusing mortgages. Significant potential lies there.

The shared ownership scheme could be made more user friendly. Prices are falling objectively but more realistic figures could be set around the shared ownership scheme, which has potential.

There is no question but that the big challenge now for local authorities is to provide housing for single people because of the changing structure of families.