Referendum on building land prices not ruled out

Taoiseach Bertie Ahern said he would not rule out a constitutional referendum to control the price of building land.

He said he was in favour of the 1973 Kenny report on the issue, but legislation could be challenged. "If that is the case, then we could have to have a constitutional referendum, which I would also be in favour of."

He said he was awaiting a final report from the Attorney General on the issue.

"I am hoping we can do it by legislation and we will try and do it by legislation. I will try and address it over the summer."

The Taoiseach was replying to Green Party leader Trevor Sargent who claimed that by not acting on the Kenny report, the Government was "standing over a kickback for the builder for every house built of about €90,000".

He urged him to reflect on what the Government was elected to do.

The reality, he said, was there were 43,864 applicants, representing over 100,000 people, on the waiting list.

There were also those mortgaged "up to their eyes, more and more in debt".

Total personal debt in the State was just shy of €130 billion, representing €32,000 for every man, woman and child, he said.

He said that when land was rezoned for housing in Shankill, Dublin, its value went from €2 million to €200 million.

"If that had been the way the Kenny report wanted it, it could have been acquired for €2.5 million."

Mr Sargent claimed there was "obscene profiteering, rack-renting, management company extortion and cruel indebtedness".

The people being favoured were key Fianna Fáil supporters in the tent during the Galway races, he added.

Mr Sargent suggested that the money raised in the tent this year be donated to St Vincent de Paul or carers.

Mr Ahern said that Mr Sargent would have seen on the previous day that 200 affordable houses, costing between €145,000 and €195,00, were handed over.

Amid Opposition heckling, Mr Ahern said this was a significant development. "Don't be always claiming everything is Z."

He urged the Green Party and other Opposition parties to help the local authorities in so many of the areas of the city where they wanted to build social housing.

"You come in here asking for affordable houses and then you use your efforts outside to block them."