Parties call for cost analysis of housing plan

The Labour party said today it had "grave reservations" over the Government's plan to swap prime city centre land in Dublin for affordable housing on the fringes of the capital.

The party's spokesman on the environment, Eamon Gilmore, said a cost-benefit analysis of the proposed scheme was required. "I suspect that the main financial beneficiaries will be the property developers," Mr Gilmore said in a statement.

The Taoiseach confirmed earlier a new agency is being set up to fast track the delivery of affordable houses in the Greater Dublin area. The Affordable Homes Partnership will spearhead a scheme that will see State lands handed over to property developers in return for the building of affordable housing elsewhere.

Tánaiste Mary Harney said allowing young people to afford their own homes was a priority for the Government. "I certainly hope that we see at least 10,000 new and affordable homes provided for those who need them in our communities".

"This new initiative is around supporting people to be able to get a house for themselves and their families," she added.

But Mr Gilmore said: "Those unable to purchase a house will be forgiven if they react to the Taoiseach’s announcement . . . with a considerable degree of scepticism.

"July announcements by the Taoiseach on housing have now become as much a feature of the summer season as open-air concerts.

"I certainly have grave reservations about the Taoiseach’s proposal to gift public land at prime locations to property developers in return for land at they have at unidentified, but probably, remote locations.

"What the Government appears to be doing here is encouraging office development at central locations while those who are going to work in these offices will be driven even farther out of the cities to find housing," he said.

Sinn Féin TD Arthur Morgan also said the Government must provide a cost benefit analysis of proposal.

Speaking in the Dáil this morning, Mr Morgan said: "Explain to this House what possible merits there is to handing over state land to developers for so-called affordable housing when there are 48,000 families on social housing waiting lists in the State.

"This Government’s answer to everything is to privatise and asset strip."

Mr Morgan said the Fianna Fáil and PD plans would "enrich their developer friends by handing over prime real estate in exchange for housing which could only be considered affordable by the wildest stretch of the imagination.

"This is not a sustainable solution to the housing problems facing this State - it is merely an attempt by the Government to cover up for the fact that they have failed miserably to deliver the 10,000 houses they committed to under Sustaining Progress."