In his two well-regarded reports on the housing problem, Dr Peter Bacon underlined the unpalatable fact that there is no quick and simple solution to the crisis; he highlighted the deep rooted and multi-faceted nature of the problem and the need for a more interventionist approach by the relevant Stage agencies. To their credit, the four Dublin local authorities - Dublin Corporation, Dun-Laoghaire-Rathdown, Fingal and South Dublin County Councils - have taken up the challenge and prepared an important report on how they intend to deal with the crisis.
The report is welcome, not just for the range of sensible recommendations that it makes, but also as a signal that the local authorities themselves are determined to take a more pro-active role, instead of looking always to central government for solutions. This kind of assertive approach is long overdue.
For too long local authorities have been too deferential towards Government; it is good to see the Dublin authorities adopting a more confident and assertive approach on an issue of vital importance to every citizen in the capital. It is also good to see the councils acting in concert. All four operate independently but they are also obliged to safeguard the wider metropolitan interest. The report, prepared by senior officials from all four councils, provides ample evidence of this.
The councils will now embark on a common action programme over four years designed to help relieve the housing crisis by providing sites for 66,000 new homes. They also make the case for action across a range of areas including transport infrastructure, water and sewage facilities and planning, all designed to make more building land available. Other proposals are sensible and well-grounded. The re-introduction of a Certificate of Reasonable Value for all new homes is overdue while the report also raises legitimate questions about the £40 million effective subsidy given by the Eastern Health Board to private landlords every year. It also usefully suggests that the 1974 Kenny Report (which recommended that local authorities should be able to acquire land at existing use value) should be re-examined in the context of discussions on a successor to Partnership 2000.
The councils state, bluntly, that affordable housing is no longer available to many citizens. Indeed, it may be that the housing crisis will get worse before it gets much better. Last week, a leading economist, Mr Jim Power of Bank of Ireland, predicted a further 20 per cent surge in house prices. Many auctioneers are predicting a increase of at least 10 per cent, as the further reduction in interest rates triggers further house price inflation. With demand continuing to outstrip supply, and with a delay of several years likely before the required infrastructural and planning changes take root, it will be some considerable time before the housing crisis in Dublin begins to ease. But the four local authorities have, at the very least, underlined the gravity of the situation and made a compelling case for urgent remedial action.