There has been a considerable amount of discussion on this Estimate and many Deputies have spoken in an appreciative way of the amount of information the Minister gave. A lot of the discussion was related to housing and I agree that it is the most urgent and most important aspect of the work that requires to be done and supervised by the Department of Local Government. I cannot compliment the Minister on the quantity of the information he gave in regard to housing, as from the little information given regarding the work in hands, the progress that is being made, the cost of house building, the rent policy with regard to houses built by local authorities or the general policy with regard to subsidy, we get no enlightenment at all. While the quantity is insufficient, the quality is such that the Minister is simply shutting his eyes to the facts in relation to housing. We cannot afford to do that at present, as there is nothing more disturbing in the whole of our economy and our social situation than the disturbance being caused by the difficulty people are encountering in looking for houses.
The Minister set up a committee in 1939 to inquire into housing conditions in the City of Dublin. It reported at the end of 1943 and we got the report at the beginning of 1944. That report said, in column 654, referring to the estimated charges on public funds as a result of the proposals of the committee:—
"The alternative to a strong housing policy is a reduced standard of public health, an incentive to social unrest and reduced employment in the building and allied trades."
According to the committee, these were the alternatives to a strong housing policy. The circumstances of the time prevented anything like a strong housing policy being pursued and added greatly to the tendency referred to in the report towards a reduced standard of public health and an increased standard of social unrest as a result of the shortage of houses. The alternatives indicated there are pressing daily more and more. Nevertheless, the building of houses is not proceeding in an increasing way and there is nothing in the Minister's statement to show he is facing the reality of the situation. What is left unsaid there, as well as some of the Minister's policy, shows that he is running away from these facts.
I asked the Minister on the 8th May last if he would state the total number of applications for houses lying within the Dublin Corporation area in respect of married persons with families, married persons without families, persons intending marriage and single persons. I was informed that there were certain priorities to the extent of 4,900 and that the demand was so great in respect of those priorities that the Dublin Corporation were not keeping a list of the other types of persons requiring houses. I was told that 2,000 houses were required for families whose houses were scheduled for demolition; 400 for families who were living in dangerous buildings or buildings closed for repairs or demolition; 500 for families consisting of two or more persons in which one or more were suffering from tuberculosis, and 2,000 in respect of families living in overcrowded conditions. I was told that, because of that, applications from persons intending marriage or single persons were not registered by the corporation, as it was public knowledge that families that were included in these priority lists were given priority in the allocation of houses.
I was not given any of the information I asked for as to the number of married persons with families and married persons without families that were applying for houses and I can only conclude that the Minister had not that information and that so great is the demand that not only are they not keeping a record of persons intending marriage or single persons but they have not made any kind of systematic record or examination of the people who are married and have families or are without families and who are looking for houses. The Minister and the Dublin Corporation should be as well able to keep a record as are private companies. A report was published last year from Associated Properties, in which they review their year's working and their plans for the coming year. They reviewed the number of people applying to them for houses and the types of persons they were unable to satisfy. The report, which was issued on Thursday, 31st March, 1946, and was reviewing the previous year said:—
"When referring to our post-war programme at the ordinary general meeting in 1944, I pointed out that the company had a waiting list on 1st January that year of 1,200 families for the five-roomed Drimnagh type of house. On 30th June, 1944, that number had increased to 1,600 families, when it was decided to close the list."
Then they decided that their original programme to build 1,200 houses be increased to 1,600. The report continues:—
"An analysis of the applications throws a striking light on the housing position in Dublin to-day. It reveals the following facts: 620 of the families (who were applying to them for houses) pay up to 30/- a week for flat accommodation which in no case exceeds three living apartments; 498 are living in two-roomed apartments for which the rent paid averages 25/-a week; a further 476 are flat dwellers at a rent of not less than 20/- a week; 266 of the applicants are young people newly-married and without children, of whom 174 are living with the husband's parents and 92 are accommodated with the wife's parents in already overcrowded households. Only 140 enjoy the privilege and privacy of a whole house to themselves, for which the average rent charged exceeds 30/- a week. The total number of individuals comprised in these 2,000 families——"
the number of families had risen then to 2,000.
"——is about 9,000."
We get from that report of Associated Properties some information as to the type of persons who are looking to them for houses, the number of such people, the way they are managing to live at present and the rents they are paying. I submit that it is imperative that the Parliament should get, through the eyes of the Dublin Corporation and the Department of Local Government, a picture of the conditions under which people who are applying for houses in Dublin live, the rents they are paying at present and the rents they are prepared to pay so that we can know the rent capacity and rent willingness of a considerable section of our people as a financial foundation upon which a suitable housing policy can be built. In the second place, in order to be spurred to overcome the undoubted and acknowledged serious difficulties which exist in a progressive housing programme, we must have a picture of the social conditions which are there, demanding and driving both Parliament and local authority to see that their needs are fulfilled, if the alternative to a strong housing policy, so clearly referred to by the committee on housing conditions in Dublin, is not to become more and more apparent and more and more disturbing here.
When we couple with the blindness of the Department of Local Government to the situation which exists and on which the report of Associated Properties lifts a small part of the veil, with the Minister's statement on the number of houses required to-day, related to housing requirements as indicated by this committee, we are further disturbed. The committee on Dublin housing in a very exhaustive report at the end of 1943 set out that, in respect of a ten years' building programme, 33,000 houses were required to meet housing deficiencies in the city and current needs. If the housing programme were to be looked at from a 15 years' point of view, 39,000 houses had to be built and, from the 20 year point of view, 46,000 houses were required. It made recommendations with regard to certain things which were required—the stability and progressive nature of house-building, the rehabilitation of the building industry, the establishment of a joint council of employers and workers to smooth over difficulties and to bring about harmony and efficient working and the standardisation of both materials and processes. We have no indication from the Minister as to the extent to which anything has been done in that line.
He tells us that, of the 61,000 houses which may take over 20 years to finish, Dublin wants 23,364. These figures suggest to me that the Minister is minimising the problem in the City of Dublin. The committee which examined the housing situation and reported in 1943 were very well qualified to review the situation and to make the necessary estimates, and I am not able to reconcile the 23,364 houses which the Minister says Dublin wants now with 33,000 houses which the committee said were wanted in Dublin in ten years, the 39,000 houses wanted in 15 years and the 46,000 houses wanted in 20 years, so that the Minister is shutting his eyes to the magnitude of the situation here when setting out his programme in that way. But even minimising it in that way, the Minister for Industry and Commerce, in the statement issued by his Department on the post-war building programme in February, 1945, gave details of the amounts of money required to carry out certain works, the proposals and the estimates for which had been put before his Department as requiring to be carried out for a five years' programme of building and constructional work. Under building, the total amount was £73,166,000 and of that he indicated that the proposals put before his Department for housing by Government Departments and local authorities ran to £26,913,000 and to £14,292,000 for housing by private enterprise. In paragraph 5 the statement says:—
"These totals for a five-year programme of building and constructional work are large—so large indeed as to give rise to doubts concerning the reality of the proposals notified to the Department. A careful review of the proposals, however, gave no reason for thinking they were not seriously meant. The evidence available in fact pointed the other way. In many cases preliminary plans, estimates of costs, etc., had been prepared and the particulars submitted to the Department were based for the most part on figures that were the result of professional advice."
The Minister for Industry and Commerce was persuaded that it would be possible to go ahead with some considerable part, at any rate, of these proposals, and he was persuaded that the people who had put up the proposals had a very considerable amount of preparation made for the work, but, at the beginning of the war, figures were published under these various headings showing how the Minister had allocated licences for the carrying out of that work. They showed that whereas houses to be built by local authorities ran to 31 per cent. of the total post-war plan for the five years, the number of licences issued by the Minister to local authorities represented only 6 per cent. of the £11,000,000 in respect of which he had issued licences. Of the £26,913,000 worth of building by local authorities and Government which it was contemplated in the plans would be expended in five years, only £18,280,000 had been covered by licences, and whereas the building of houses by private persons was estimated for the five years at £14,292,000, or 25 per cent. of the five-year plan, the amount in respect of which licences had been issued was £2,904,000, or 11.5 per cent. In view of the difficulties of the times, I can understand 25 per cent. of the total number which were to have been built by private persons not being realised. 11.5 per cent. went to private builders.
I cannot understand why twice as much should have gone under the licences to private builders as went to local authorities, when the local authorities were planning to spend twice as much, at least, as the private builders. In an intervention yesterday, I drew attention to the intention to set up a co-ordinating body of representatives of interested Departments—Local Government, Education, Posts and Telegraphs, Defence, Industry and Commerce and Board of Works. I want to learn from the Minister whether that co-ordinating body has been set up or not and, if it has, what steps were taken on behalf of the representatives of the Local Government Department on that body to see that housing by local authorities got its fair share in the allocation of building materials. When you look down the lists of things to be done under the plan, you find that £9,000,000 is to be devoted to hospitals, £2,500,000 to military and Garda barracks and £4,000,000 to schools and colleges. Why the working-classes and the middle-classes should be robbed of building materials so as to provide for additional hospitals or additional military barracks is a question that should receive some answer. I find the Minister blind to the facts in the figures he quotes with regard to Dublin and in the figures by the Minister for Industry and Commerce as to the allocation of building materials for houses. There has been a complete omission to review quantitatively the work that is being planned at present.
The Minister indicated that he intended to bring proposals before the House to provide that State subsidies for housing purposes would be continued over a period of 50 years instead of 35 years, as at present. We have been pointing out to the Minister over a number of years the facts disclosed by the report of the Committee on Housing in Dublin, which showed that unnecessarily high interest was being claimed by the Standing Committee of the Irish Banks from Dublin Corporation for the loan of money for housing. The Government have fallen into step with our line of thought in that matter and are now lending money for housing at 2½ per cent. When the committee I speak of reported that, to provide the housing that was required, interest rates should be reduced and the period of borrowing extended, I pointed out that if the period was extended, as indicated in the report, to 60 years, it would mean that, over the period the committee referred to in its report, £12,000,000 would have to be paid in interest by the City of Dublin for the work being done more than was necessary and that that sum of £12,000,000 would be equal to the £12,000,000 of Government subsidy which was proposed at that time. I urge strongly that, before the period of borrowing for housing is extended from 35 years to 50 years, we should have a report by a committee of experts or by some persons prepared to stand over such a report as to what the financial and economic effects of doing that will be.
In the past, housing has been financed by borrowing over 35 years. The interest and principal would be completely repaid over a period of 35 years. The Minister now proposes that interest and principal be paid by an annuity over a period of 50 years and that the rate of interest be 2½ per cent. If the Minister borrows £100 at 2½ per cent., repayable over 35 years, he will repay it by 35 annual payments of £4 6s. 5d. If he borrows £100 at 2½ per cent. over 50 years, he will repay it by 50 annual payments of £3 10s. 6d. One aspect of the difference between the two proposals is that borrowing at 2½ per cent. for 35 years, for every £100, you pay £150 back over the 35 years. If you borrow at 2½ per cent. over 50 years, you will pay back in principal and interest £175 for every £100 over the 50 years. When repayments are finished, you have paid in the first case—the 35-year case—£50 for interest and, in the second case, £75 for interest. The difference in borrowing, so far as repayment goes, is that you pay 25 per cent. more in interest alone when you borrow for a period of 50 years than you would pay if you were borrowing for 35 years. Why is the Minister taking up this attitude? He is taking it up because he says that borrowing for the longer period will mean that he can charge a smaller rent. The general practice is, when houses are built by local authorities under the Housing of the Working Classes Acts, that the State and the local authority bear part of the cost and the rest is paid in the form of rent. If we take a house the all-in cost of which is £700, the rent which would completely amortise over 35 years the cost of that house would be 11/7 a week. If the money was borrowed for 50 years, instead of 35 years, the rent which would amortise the borrowing would be 9/5. So that in the case of a £700 house the difference in the weekly payment that would have to be made would be the difference between 11/7 and 9/5, or 2/2. Sooner than decide that that 2/2 should be spread in some way or another as a payment to be made partly by the State, partly by the local authority and partly by the tenant, the Minister proposes to pile up for every £100 of capital expenditure an additional outgoing of £25 in order to spread the borrowing from 35 to 50 years. We are proposing to make it easier for ourselves in order to avoid looking at the cost of houses, on the one hand, and, on the other hand, we are prepared to pile a burden of debt on the people who will be there from 1982 to 1997. If we propose to do that, I think that we ought to have a systematic and expert examination as to why we propose to throw an additional debt of £25 on every £100 on our people in the future rather than face the allocation of, say, 2/2 as between the State, the local authority and the occupier of the house to-day.
It is interesting to see it in terms of actual cases. In October, 1945, the Thurles Urban Council discussed a building scheme for which they had received tenders. They adopted a £55,000 scheme which was the all-in cost of building 72 houses. The all-in cost of each house was to be £764. The rents that were to apportioned for different classes of houses under that scheme so as completely to amortise the borrowing were figured out as being 17/1, 19/1 and 24/6. These were the rents that had to be met by a combination of the State, the local authority and the occupiers. That £764 at the interest rate now proposed by the Minister, borrowed over a period of 35 years, which was the period considered by the Thurles Council at that time, would be paid off by a weekly payment of 12/5. That means that the change in the interest rate alone would effect the difference between the rents of 17/1, 19/1 and 24/6 of 1945 and the 12/5 of to-day at the 2½ per cent. rate. If that £764 house is built by money borrowed at 2½ per cent. for 50 years, instead of the weekly all-in rent being 12/5, it will be 10/4 or a difference of 2/1. But, for the sake of deciding how to apportion that 2/1 to-day between the State, the local authority and the occupier, the Minister is prepared to pay an extra £13,750 in interest on that scheme. If a scheme like that was carried out at 2½ per cent. borrowed for 35 years, there would be £27,500 to be paid in interest for that period. But, if the money is borrowed at 2½ per cent. for 50 years, an additional £13,750 has to be paid. The Minister ought not to ask the House blindly and without any expert report to adopt a policy which will pile a debt of that extent on people in a somewhat unknown future. Talking about rents——