Housing policy failing 'ordinary families' - Labour

Labour has claimed the Government is failing to provide housing at affordable prices following a report today that just 163 social…

Labour has claimed the Government is failing to provide housing at affordable prices following a report today that just 163 social and affordable houses have been built so far this year.

The party's environment spokesman Mr Eamon Gilmore said new Government figures showing the number of affordable houses built this year is less than the required 20 per cent of total completions, confirmed his belief that the Government is failing to provide affordable housing for ordinary working families.

Under a scheme introduced by the then Minister for the Environment, Mr Dempsey, and upheld by the Supreme Court, builders were obliged to set aside 20 per cent of all new development land for social and affordable housing.

But, following pressure from the construction industry, the regulations were changed last year. Developers can now pay compensation to local authorities or provide alternative sites elsewhere in lieu of allocating 20 per cent of the homes on a site to affordable housing.

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Mr Gilmore said the figures released today confirm Labour's prediction that the Government "sell-out" to the building industry at the end of 2002 would result in a "serious shortfall of affordable houses".

He said the Government had changed the affordable housing law in 2002 - effectively handed back 16,000 affordable housing sites "to the friends of Fianna Fáil in the building industry".

"So, instead of 16,000 affordable houses, we only have 163 - or 1 per cent."

Mr Gilmore said the Government has "consistently turned its back on working families who are struggling to provide a house for themselves".

He also asked where was the promised action on the cost of building land as advocated by the all-party committee on the Constitution.

"This Government's benign treatment of special interest groups in the building industry is leading directly to the housing crisis faced by thousands of working familes.

"The Government fails to understand the difference between the property market and a public housing policy. The country has an active, lucrative property market but has a disastrous Government housing policy. A new approach is needed to enable families to put a roof over their heads."

Fine Gael's environment spokesman, Mr Bernard Allen TD, said the Government has "failed abysmally" on the social and affordable housing front.

"It has reneged on its solemn commitment, in agreement, with the social partners, showing their true uncaring face compared to its hollow rhetoric about a social conscience," he said.

"The reality is that this Government is the main beneficiary of escalating house prices - the higher the prices go the greater return to its coffers. This Government is taking more than 40 per cent in tax on every house purchased - for example in the purchase of a €300,000 house the Government is receiving approximately €135,000 in tax revenue."