Feargal Quinn (Independent)

I welcome the Minister. It has been very interesting to listen to his speech. He mentions the challenges and the options he faces. He has also said there are radically different circumstances now from those 12 or 18 months ago.

I had the experience 25 years ago or more of serving on the committee of the Archdiocese of Dublin which the archbishop established in an attempt to get people on the housing ladder. It was a very interesting challenge. In the 1970s young people were paying rent and were not able to raise the basic deposit required to get a mortgage. The church approached various church bodies which owned lands and arranged half-way houses for those who were paying rent. It was an area of which I had been unaware. The challenges facing the Minister are not unlike those that faced us 25 or 30 years ago. The scheme which the archdiocese introduced was based on a similar scheme, Shelter, in London which was very successful.

Figures from the Department of the Environment, Heritage and Local Government reveal that the number of affordable units has risen by 40%, from 2,200 at the end of 2007 to 3,700 today. The Minister has given additional figures. The downturn has had a massive effect on Dublin's affordable housing scheme. First-time buyers are not interested as house prices no longer reflect reasonable market values. These "affordable" houses were bought at pre-recession prices and developers are unwilling to renegotiate prices, despite the drastic change in market conditions. Councils cannot force developers to cut prices. They are contractually obliged. In some cases the affordable houses are more expensive than other similar houses. It is estimated in Dublin that the council may be able to sell off only about half of its current stock. This problem will get worse when the additional 2,000 houses become available this year. It will be almost impossible to sell the houses.

It is amazing that local authorities are struggling to sell the homes, despite the fact that there are approximately 28,000 people on the waiting list. Potential buyers are faced with the problem of not being able to get mortgages as financial institutions are offering only 80% of valuation to borrowers or will not sanction loans on over-valued properties, leaving many people unable to buy and councils having a glut of unoccupied houses. The only solution is for local authorities to revise values further downwards. Perhaps a lottery draw system should be looked at. Maybe it should be replaced with a more efficient system such as a listing process. The large deposit need for the affordable housing scheme is putting a large number of people off. Perhaps this could be examined. A much smaller deposit would encourage people to buy. Having people making payments is of course better than having hundreds of those houses unoccupied. I would also support the suggestion to transfer some of the properties to the rental accommodation scheme, or even use them as temporary social housing and support. There must be many people living in very poor conditions who could be accommodated.

There will be few, if any, affordable housing developments coming on stream this year or in the next few years. Dublin City Council has dropped plans to build thousands of new homes. The three housing projects that have been sanctioned this year have been radically downscaled. There were plans in St. Michael's Estate in Inchicore to build 715 homes, as well as crèches, sports fields and a public square; now there will be only 76 units. Radical cuts like this will affect a large number of people who are less well off. The Minister of State has provided some options today, but the Government needs to find a way to slash prices in the affordable housing scheme to enable hundreds on the waiting list to have a chance to afford accommodation and to go some way towards solving the sizable housing problem.

I outline some other thoughts. Has society been focussed too much on getting people onto the property ladder and not focussed enough on the provision of quality homes for all? If one owns less than 20% of one's home, one is effectively renting it from the bank anyway. The affordable housing scheme has other drawbacks. If one has previously owned a property — the Minister of State may explain otherwise if I am incorrect — one is not eligible. What of people who have lost their homes? Also, a person also must have held a property for 20 years. If one buys an affordable housing property, let us say, a two-bedroom apartment, one is very likely to need a bigger house in the future or likely to have to move to take a new job outside of Dublin, abroad or somewhere else. Is there enough flexibility? Is this putting people off? I do not know the answer to these questions.

The Minister of State has touched on some of the issues and has provided some options today. I am very pleased that the Minister of State, Deputy Finneran, is in place because he has grabbed the challenge since assuming the position. I hope that in future the same commitment to attempt to solve this will be present. My experience from 25 to 30 years ago is that the problems do not remain the same. They are challenges, they change and they are different from the problems of last year. As the Minister of State noted, the problems of last year are different from those we must now face. I am pleased this debate has taken place, that we have had the opportunity to draw attention to the matter and I am pleased the Minister of State is giving the matter the attention it deserves. Hopefully we can find solutions.