Damien English (Meath West, Fine Gael) | Oireachtas source

This is about doing, and getting, the right thing, that being, the overall package. Senators referred to buying a car, a pig in a poke and so on. I told Senator Kelleher, one of the sponsors of this amendment, in conversation that we would introduce a package in a few weeks' time. It will be a full rental strategy. If Senators wish to revert to the car analogy, we will introduce a full car in a few weeks' time. Not a wheel of the car or just one part of it, but a full strategy that will balance the situation.

It is assumed that landlords and investors do not want certainty or predictability but that is untrue. The majority of people who invest money want reliability and certainty. They want to know what they are investing in. They are happy with an overall package, but they like predictability and reliability. We want investors. Even with the best will in the world, we cannot solve this crisis just by building taxpayers' houses, that is, social housing. We could not do it quickly enough even had we all of the money tomorrow. Some €5.5 billion has been allocated, but we need private sector investment, the existing accommodation and so on. All of the housing supply is needed to tackle the issue, which cannot be fixed overnight. There is a danger that, if we use the proposed blunt instrument, we will scare away investment.

Can anyone tell me how the amendment will increase the housing supply? If we all agree that increasing the supply is the solution to our problems, we must increase it, but this measure will not help. That is not to say that we will not introduce a package next week to deal with the various issues involved. We are committed to doing that. There will be a major focus on supply but the package will also include mechanisms for setting and reviewing rents. This legislation will not be finished before we introduce our strategy. It is a question of having a package that achieves a balance and does not affect one end of the market more than another. It is important that we get this right.

Many issues were raised about the cost of building. VAT is not the only solution. It only forms part of the cost. Site costs, levies and infrastructure are significant issues. We are analysing the cost of construction. Compared with the UK and the rest of Europe, our construction costs are not that much out of synch. Measures in the action plan will deal with the issues. There is more to building costs than VAT. It is not that I am against reducing the rate for housing, but we cannot guarantee that the reduction would be passed on to the purchaser. The help to buy scheme gives purchasers their own tax back. However, we will monitor the VAT situation. Everything is being considered to keep construction-----