Alice-Mary Higgins (Independent) | Oireachtas source

I agree that we should use all the tools in our armoury. That is why I have not sought to prohibit open market dwellings. The Minister is saying that the vast majority will be provided through these other means but there is nothing in the legislation to say that this will be the case. I will be frank. What I do not want is for local authorities to be delivering 40%, 50% or 60% of houses through the open market. This is not an ideological issue or me saying I do not like the market. I have no problem with the market existing. That is absolutely fine. However, it is more expensive and this is purely a matter of value for money. We must factor in profitability and we will be in a competitive situation because that is the nature of a market.

Even as regards new builds in areas at which we are looking for land development, I am concerned. Of course we want that land to be used for development but I do not want a local authority that is seeking to buy land for the purpose of directly building social or affordable housing to be competing with somebody who may buy that same land, develop it and then sell it back to the local authority at a higher price. There are supply side elements and incentives here but not all supply involves the same cost to the State. Not all supply has the same long-term benefits, such as secure ownership and control over a long period. Not all supply involves the same measures. We also need to address some of the pressures of the market because this is also about deflating the market. Supply on its own will not do if we create a dynamic whereby there is a form of supply that is more profitable and which we are subsidising because we will be in competition with ourselves, that is, the State. That is my concern.

There is a shift back into direct build and I recognise that. I am concerned, however, that going to the open market and buying a section of an estate or a new build will be seen as the easier option. I worry about what we need to do to build capacity and direct builds should be the easier or preferred solution. I set a cap of 15% on it but my worry is that open market dwelling purchases will become 40% or 50% of the housing that is provided at local level. If that is the case, the State will be getting worse value for money and will be competing with itself for all those developers, builders and suppliers. We will be competing with ourselves and that is a foolish move. I am not saying that we should not use all the tools in our armoury but certain tools are better. We need to give a clear signal of a hierarchy of mechanisms of provision that are better value, offer better control and can deliver better standards. We need to express preferences about the model of delivery. That is not to exclude the open market and it is not ideological. It is practical.