State urged to invest €4bn in new homes

HOMELESSNESS CHARITY Focus Ireland, Siptu and Ictu have jointly called on the Government to invest €4 billion in new homes in the coming budget.

Speaking after a meeting with Ictu general secretary David Begg and Siptu president Jack O'Connor, the charity's chief executive Joyce Loughnan said the money was a fraction of the €400 billion guaranteed to prop up the banks. It would not only solve a social problem, but would also stimulate the economy and help protect jobs, she said.

Some 5,000 people are homeless at any one time in Ireland and 43,000 households are on local authority housing lists.

The investment could provide 18,000 units a year, made up of 10,000 social units, 6,000 affordable and 2,000 new rental accommodation scheme units.

According to Focus Ireland, the Government committed itself to provide 15,000 housing units per year from 2006-2009 to address the problem, but by the end of 2009, it will be over 40 per cent, or 25,000 units short of its target.

"In addition to the strong social argument for meeting these targets, Focus Ireland believes there is also a very strong macroeconomic case for increasing investment on social and affordable housing in budget 2009," Ms Loughnan said.

She said the investment would also be consistent with a commitment given by Minister for Finance Brian Lenihan, to prioritise National Development Plan capital developments that would help stimulate economic growth.

She also said the charity's own housing programme was at a complete standstill since October last year due to lack of funding. And, she said, the supply of houses promised under the Part V scheme, which obliged developers to provide a percentage of every residential development for social and affordable housing, was drying up because of the slow-down in construction.

Ictu general secretary David Begg said the Government has a unique opportunity to address the housing needs of thousands, boost economic growth and protect construction jobs.

"Such an initiative should be seen not as a cost, but as an investment in social infrastructure, in people and in social cohesion. Siptu president Jack O'Connor warned an investment in housing could not be a "generous injection of good fortune to relieve the woes of property developers".

"Such contracts have to be negotiated on terms that are sufficient to cover building costs and that respect the industrial pay rates and ensure fair and decent working conditions," he added.