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Dáil Éireann debate -
Thursday, 6 Jul 1950

Vol. 122 No. 5

Committee on Finance. - Housing (Amendment) Bill, 1950—Second Stage (Resumed).

The Housing Bill, which the Minister introduced this evening, is a modest measure, and I am sure the Minister himself would not describe is as more than a useful little Bill. It contains nothing spectacular, nothing revolutionary, and nothing that might be described as more than questionable. It is the sort of a Bill, tidying up a few odds and ends, which might be introduced pending the introduction of a more comprehensive and a better-considered measure. In that sense we are prepared to accept the Bill and to give it a Second Reading. We do, of course, reserve the right to put down amendments to deal with other deficiencies in the existing codes of legislation which could as readily be dealt with, we believe, in the measure as the specific matters with which it deals.

We hope, however, that the Bill now before the House is not intended to indicate the lines upon which the Government propose to tackle the housing problem in the future. On a Bill of such limited scope as this it would scarcely, I agree, be appropriate to open a general discussion on so complex and difficult a problem as that of housing. Apart from this, however, the schedule of business which the Dáil has adopted for the concluding stages of the session would probably preclude one from opening such a discussion at any length. To do so would obviously be contrary to the spirit of the agreement and would encroach unfairly on the time of the House.

There are, however, one or two broad aspects of the matter which, perhaps, I might touch, upon now. The first of these is that over the years our attack on this problem has consisted very largely of improvisations and variations upon, as musicians might say, two themes, the Labourers Act of 1883 and the Housing of the Working Classes Act of 1890. These Acts have been the joint foundations of our housing codes. Past housing measures have been based upon them, and the provisions of these codes have been extended and adapted to give a solution of sorts to the pressing housing problems of the day. The consequence, I think, now is that the very important provisions of principal Acts have been so strained that the whole statutory structure is in danger of collapsing. I regret, therefore, to note that the Minister would seem to suggest in his memorandum that nothing is likely to be done before 31st December, 1955, to review in its broad principles and in its general structure the legislation upon which the execution of our future housing programmes is going to depend.

The next development to which serious attention will have to be given is the fact that the financial burden imposed by our housing programmes has already attained proportions which were undreamed of when the basic measures to which I have referred were first enacted. Indeed, we have now come, I think, to the stage at which we may well ask ourselves, can the community continue to carry this burden in the proportions in which it has been allocated hitherto among the various interests involved? The local authorities are already crying out that they and the ratepayers whom they act for cannot continue to accept their present share of it, at least on the present scale. In the majority of cases, the tenants of new houses are proclaiming that they are in the same position, and the very fact that this year the Government find themselves unable to meet their obligations for housing grants out of the ordinary revenue of the year, is in itself a confession that the annual burden is becoming too much, even for the Government.

In these circumstances, surely it is urgent that the whole matter of tackling the housing question should be considered afresh, that legislative procedure, finances and methods of construction should be examined to see whether housing costs cannot be brought down? The central authority is giving very generous grants, and the local authorities are supplementing them, in some cases by direct subventions from the rates and in other cases indirectly by remissions of rates, yet I, for one, am very doubtful whether the full value, or anything approaching the full value of the grants in aid, either to the purchasers where the houses are built for private individuals, or to the tenants of new houses where they are built for local authorities, accrues to the members of the community who, as ratepayers and taxpayers, are providing them in such generous measure.

In my view it is time that this whole question was faced up to and closely investigated. It has been the fashion in this House for members of the Labour Party to attack Irish manufacturers and to stigmatise them, not merely as profiteers, but as criminals. The Tánaiste himself has given the lead in this matter, but I have not heard any member of the Labour Party, Tánaiste or otherwise, criticise the profits made by certain firms of builders' providers, and yet those profits appear to be colossal, certainly colossal if the standard taken be the rate of profit allowable in our manufacturing industries.

Another question mark that has been before my mind for a long time is as to whether the local authorities are the best instruments to employ for the solution of the housing problem, whether, indeed, the widespread dispersal of responsibility among so many bodies of dissimilar capacity and resources does not militate against the economic and expeditious solution of the problem. Beyond any question, I think it will have to be admitted that it certainly creates serious administrative difficulties arising out of the wide discrepancies in the rents charged in contiguous areas and of the different standards of maintenance and repair which obtain in them, as well as the almost insoluble financial difficulties arising out of the very great difficulty of shouldering the monetary burdens of housing programmes.

In saying what I have said on this matter, I must also emphasise that it must not be forgotten either that we were striving to improvise in the fashion I have suggested by the desperate need of our people for houses. After generations of neglect we found ourselves with a slum problem and a housing problem more acute and more appalling than any in Europe. Unfortunately, I have to say in justice to the Administration of which I was a member, and in rebuttal of the attacks which were made on that Administration in the course of the debate on the Estimate for Local Government, I have to say that, unfortunately, that first Administration which took over this part of the country from the British did not evince any great determination to deal with it. Indeed, their record in dealing with this great social evil can hardly be qualified by any other adjective than despicable.

The Deputy was not interested in it at the time.

Deputy Dunne, when speaking on the Estimate for Local Government, was pleased to be censorious regarding the housing situation in County Dublin. When his present Fine Gael associates were last in power in this country, that is, from 1922 to 1932, the total number of houses built throughout the whole country over the period from 1924 to 1932 was was only 29,193. That figure included 3,959——

How many bridges did they build?

Do not offer any apologies about the bridges.

Ask Deputy Kinane.

I was speaking of the period from 1924 to 1932. I heard Deputy Byrne interject a remark about the civil war. Was Deputy Byrne asleep during the period from 1939 to 1946 when there was a world war and when he was cashing in on the fact that during that period houses could not be built?

But hotels could.

No hotels were built in 1946. If the Deputy would just bear with me while I outline what was done in relation to housing by the Government which the Deputy helped to displace.

Would that not be more relevant on administration than on this Bill?

This Bill proposes to amend all the Housing Acts from 1890 to 1949.

It occurred to me that it would be more relevant on administration.

I want to show the progress which has been made in dealing with the problem with which this country was faced when it took over from 1922 to 1924. The problem, therefore, if we keep that figure of the 29,000 houses built in eight years in our minds, a problem which, through centuries of neglect and oppression was reflected in the appalling housing conditions of a very great number of our people, remained to confront the Fianna Fáil Government when the people threw Deputy Dunne's friends out of office in 1932. How did the last Administration face up to that, to the situation which then confronted them? Not by a puny measure like this. The first serious Housing Act passed by the Government in this Dáil, passed by an Irish Government, was the monumental Housing (Financial and Miscellaneous Provisions) Act, 1932. It was passed by Fianna Fáil in its first year of office in the teeth, I must say, of the most unscrupulous Opposition that ever sat in this House.

Under that Act, in the 15 years from 1932 to 1947, no less than 141,000 houses were built, and during six years of that time as I have already reminded Deputy Byrne, active war was being waged in Europe. Materials for the greater portion of the time were practically unobtainable. They were considerably restricted if in improved supply, during 1946 and 1947, and only began to be available in really significant quantities in 1948. Notwithstanding the period from 1941 to 1947 when building materials were practically unprocurable, 141,099 houses were built by Fianna Fáil, most of them in the last six years. Now let Deputy Dunne —he is not in the House but someone may take the trouble to refer him to these figures—compare the 29,000 houses built by Deputy Dunne's friends in the eight years, 1924 to 1932, with the 120,000 houses built by Fianna Fáil over six years.

Deputy Dunne's indictment of the Fianna Fáil Administration in relation to County Dublin housing was entirely misdirected. It is quite true that the progress in providing houses over the period 1933 to 1941 was most disappointing in County Dublin. But during that period Deputy Dunne's Fine Gael friends had a majority on the Dublin County Council. They controlled it and they blocked every endeavour to make progress with housing in their efforts to embarrass the Fianna Fáil Government. They were not only dilatory in availing of the generous grants which the 1932 Act made available, but they actually connived at a campaign to prevent the due payment of rates by landowners within their administrative area.

With a Fianna Fáil chairman?

The late Deputy Belton was not a Fianna Fáil member.

I am not talking about the late Deputy Belton, but of Councillor Clare.

That was not until 1942 when you fellows put him in in the hope of saving yourselves and of making him a scape-goat for your maladministration. However, that is not in order.

It does not arise.

I was going on to say that the county council were not only dilatory in preparing schemes and availing of the generous provisions of the Housing Act of 1932, but they actually connived at a campaign to prevent the due payment of rates by landowners within their administration area. In that way the finances of the council were completely disorganised and eventually the accumulated arrears of rates due and not collected amounted to over £200,000 or approximately 50 per cent. of the rate collectable. Thus, Deputy Dunne's friends had reduced the Dublin County Council to a condition in which it had neither the inclination nor the finances to embark upon a housing scheme commensurate with its people's needs. That was the position when my patience as a democrat became exhausted and I dissolved the Dublin County Council and replaced its members by a commissioner administering its affairs.

Now, in the course of the debate on the Vote for Local Government, Deputy Dunne took occasion to attack the administration of these commissioners. The first task of these commissioners, in order that they might be allowed to get on with housing, was to reorganise the finances of the county council and restore its solvency. In addition, their attention was largely demanded by measures for the protection of the people and for ensuring a continuance of their food supplies which the war in Europe made necessary. The finances of the county council, however, having been reorganised, and the rates having been brought down from their previous unjustifiable level, the commissioners were able—at my instance a succession of them—to devote their attention to the planning of a comprehensive housing scheme to meet the needs of Dublin County. This they did with the utmost expedition. One thousand prospective sites were earmarked. The statutory inquiries were held. The sites were cleared and plans were prepared for 500 houses and let out to tender.

While this was being done, Deputy Dunne was neither in Dáil Éireann nor in the Dublin County Council. He had no hand, act or part, nor had any of his friends, in the preparation of the plans or in their execution. Only he would have the brazen audacity now to claim credit for them. I trust that, after this exposure, we shall hear no more of his empty bragging in this House in regard to this matter. I do not wish to take up any more time. I have merely to add that the individual members of this Party have certain suggestions to make for improving this Bill. Most of them, I believe, will involve only very simple amendments which can be readily drafted for inclusion in the Bill when it comes again before us on the Committee Stage.

I trust the Minister will see his way, when winding up this debate, to indicate that he is prepared to accept these proposals in principle and to introduce amendments on the Committee Stage for the purpose of embodying them in the Bill. One suggestion to which I should like to direct his particular attention is that made by Deputy Lemass in the discussion on the Turf Development Bill. The suggestion is that housing grants should be made conditional, where feasible, on the beneficiaries installing turf-burning ranges and stoves in their houses. That is an excellent suggestion which I am sure the Minister for Industry and Commerce would like to see implemented, and I trust the Minister for Local Government will himself consider it favourably.

Unlike Deputy MacEntee——

I might draw the attention of the House to the fact that, on the agreement reached, the number of hours allotted to the Opposition—that is, to Fianna Fáil— is two-thirds of the time. At the moment Government and Opposition are exactly level as regards time.

I think everybody will probably be satisfied, particularly on this side of the House, if the contributions are short.

I have to keep a note of that because I have been asked to do so officially and, if I call two or three of the one Party in succession, I hope it will be understood by everybody.

I shall be well under one minute.

I merely do not want trouble later on.

Unlike Deputy MacEntee, I intervene purely for the purpose of saying that I heartily welcome this measure. I believe it to be constructive and progressive. It is one upon which the Minister deserves congratulation, and it is one which will have the support of the vast majority of the people inside the House and outside the House.

Like Deputy MacEntee, I am disappointed that the scope of this Bill is not much wider. I welcome the Bill, and I concede that it is a step in the right direction, but I think that larger steps will have to be taken in the very near future to solve the housing problem in Dublin. The problem in Dublin is by far the biggest problem in the country. The Minister must realise that when this Bill becomes law Dublin Corporation's need of finance will be even greater than it is at present. He knows that at the moment Dublin Corporation is in process of seeking another loan. The money which we raised has practically run out. It will last until the end of this year. The commitments of the Corporation at the moment for contracts in progress are over a quarter of a million per month. That is the first matter to which I would draw the Minister's attention.

The first question to which I would like a reply is, has he, in consultation with the Government and the Minister for Finance, come to any decision as regards the raising of moneys for the continued progress of the housing programme of the Dublin Corporation? This Bill will throw an additional burden on the corporation. There are thousands of applicants at the moment under the Small Dwellings Act, and there will be many more thousands when this Bill becomes law. At the moment we are allocating under three heads. We are allocating 65 per cent. to the houses built for ordinary slum clearance and we are getting two-thirds in subsidy; we are allocating 25 per cent. to people who are living in non-slum areas but in overcrowded conditions; for them we only get one-third subsidy. The Minister must know that there are many thousands in Dublin living in single rooms in non-tenement areas. In some instances, there are as many as seven people in one room. Only 25 per cent. of the applications that are in can be dealt with in any building year.

The next question is in relation to the newly-weds. For houses built for the newly-weds we only receive from the Government a sum of £250. The whole broad policy of finance in relation to housing must be tackled. I would like to bring the Minister back to his own method of tackling it. I think it is Deputy Captain Cowan's method, too, and I have come round to the belief myself that it is the right method. I think the time has come when housing must be made a national charge because the Dublin ratepayers certainly will not be in a position much longer to go ahead with the housing programme envisaged by the corporation and by the Minister. We cannot find the money. We cannot put any more on to the rates than they are bearing at present. When the Minister was a Deputy in this House he had his name to a motion, together with the late Deputy Tadhg Murphy and Deputy Martin O'Sullivan. It was No. 12 on the Order Paper. The motion asked that a national corporation be set up to deal with this housing problem and to make advances for the purposes of the corporation at a rate of interest not exceeding 1¼ per cent. per annum, including the provision for capital redemption. Our last loan in the corporation was raised at 3½ per cent. In other words, we have to refund at more than double the rate that we had to refund the previous loan. We have to lend that money to applicants under the Small Dwellings Acquisition Act for a term of 35 years, and with the new legislation now there will be a bigger rush and we will need more money. I know what the reply is—the market may be different in 15 years, we do not know whether the rates of interest will rise or fall—but the point for the Dublin Corporation is that, every year for the next ten to 15 years, they will have to look for a sum of money in the neighbourhood of £5,000,000 for housing purposes.

I want a categorical answer from the Minister as to whether any specific arrangement has been or will be made to raise money at a low rate of interest. The Minister, when he was a Deputy, was very fond of striking that particular note. He thought we should get money at 1¼ per cent. per annum. I want to know if he finds that still a practicable proposition; and, if not, why not?

I would ask the Minister to make Section 6 retrospective. Quite a number of people bought houses and did not get the benefit of the grant of £275. They also had to pay duty, which was approximately another £100. I would ask the Minister to make this retrospective, to bring in those who bought houses from November 1st, 1947. I take it one would have to go back to that date. They would not be a very big number. It is only justice to those who have bought houses to whom the grant did not apply and who were the first occupiers and are still in occupation. It may be contended that it will be difficult to prove that they were the first occupiers. I put it to the Minister that in the case of those who bought the houses under the Small Dwellings Act there is no difficulty. As he knows, they must reside in them for three years and the houses were under inspection by the corporation or local authority inspectors from the time they were started. I hope the Minister will find it possible to do that.

In relation to the cost of houses, only too often the builders have been held up to opprobrium. There is, however, a regular racket in this city by landowners. They will not sell the land outright—land that was good for nothing but grazing or a sports field at a nominal yearly rent. They charge a fine of £150 for each site.

I am quoting the particular instance I know of. They also stipulate to the builder, before they allow him to build, what the ground rent is to be and in the case I am citing it is to be £15 per annum. Now £150, taking eight houses to the acre is £1,200; the ground rent at £15, capitalised at 20 years' purchase, for eight houses to the acre, is £2,400; making a total of £3,600 that those people are taking out of it. That is something the Minister must tackle.

Suggest confiscation, if you keep that up.

I do not think it will be an easy matter to deal with. I was about to suggest to the Minister that for State houses no such fine should exist and that the price of land should be a certain figure, but I know that in certain areas it must vary. The Minister might say that the ground rents to be charged for any grant houses, for the best grant house, should not exceed £10; but what I might suggest as a maximum might be taken as a minimum, so there would have to be a graded scale.

They would preclude grant houses as well.

These are things that are putting up the cost of building. They put a few hundred pounds on to the cost of the house. I know it for a fact that small builders have practically nothing in the long run. They are only getting a living, with very little profit, while the land sharks are getting it all. The Minister must evolve some means of dealing with it.

Finally, I would ask him to come to grips with the corporation on the finance question. Twice last year when we were to meet the Minister and the Minister for Finance, on each occasion that appointment to meet the deputation was cancelled at the last moment. I do not think it was nice treatment. Deputy Alderman Peadar Doyle and myself turned up here at 4 o'clock, the time of the appointment, and were told only at that moment that the appointment had been cancelled.

On the previous occasion, the same thing happened. I got notice in the morning—having put off business for the afternoon—that the deputation was not to go to the Minister. Bear it in mind that the corporation cannot possibly proceed with the programme which they envisage if proper State aid is not forthcoming. I think the Minister will agree that as Dublin is a clearing-house for the whole country it is entitled to terms better than elsewhere.

My contribution to this debate will, of necessity, be very brief. First of all, I would like to congratulate the Minister on the forthright way in which he has introduced this Bill. It is obvious that there is widespread approval for it throughout the country. There are certain aspects of it about which I think the Minister should be warned in advance. The failure of the 1948 Bill may be very largely ascribed to two or three causes. The first is the form of the grant, the second the question of sites and the third the question of the deposit which an individual has to pay. Provision is being made in this Bill for a rectification of that position. In Section 16, provision is made for the necessary acquisition of sites and in Section 27 the necessary rectification is being made with regard to valuations.

Might I point out the interesting experience we have had in Dublin in connection with the question of sites as indicating the necessity for the change which the Minister is making? The Dublin Corporation advertised a number of sites which were at their disposal and for these there were no fewer than 1,300 applicants, while it was only possible to allocate something between 300 and 400. The remainder of the applicants had to be disappointed because the sites which the corporation had were only just the tail-ends of their own schemes. That, as I say, is being altered.

I want particularly to direct the Minister's attention to Section 27, because it is quite possible that he may be creating a sea of trouble for himself. The present Bill proposes a 5 per cent deposit. The average cost of the houses purchased in the city for the past two years runs to about £1,800. Five per cent. in that case would call for a deposit of £90. Actually, the experience we have had is that the deposits do not run below £250. They went, as a matter of fact, over £350, and the individual borrowing that deposit, it should be remembered, has to furnish his new house. That arose from the fact that the valuation was linked with the terms of the Small Dwellings Act of 1899 which related to the question of market value and market value, as prescribed by the valuers employed by the local authorities, differs very widely from the actual cost of building a house. Under Section 27 the Minister proposes to alter that. I would, however, warn him in advance that there may be trouble because of the words he is using in that section. He uses the words "reasonable cost". I think my legal friends will agree that there is no word in the English language so fruitful of litigation as the word "reasonable". People will be under the impression that the deposit is 5 per cent. on something very close to the cost of the house, and if they have to pay anything beyond that there will be disappointment. Who is to declare what is a reasonable price? The builder will charge one price and the purchaser, because he wants a house, will probably be prepared to pay something in advance of what might be a reasonable price and he will be the type of individual, the white collar worker, for which this Bill is largely introduced. The valuers acting under the Small Dwellings Act were people who were not connected with the local authorities. They were outside people and they conscientiously interpreted the words of the 1899 Act, with the result that the valuations which they placed on the houses were £100 lower than the price which the purchaser had to pay. The result was that the deposits ran from £250 to £400.

The Minister will have to tackle the machinery under which he is going to give effect to the new valuations. Perhaps he will take a suggestion from me so far as the city is concerned. Probably the best means of approaching the matter would be to allow the building surveyors of the Dublin Corporation, who are the servants of the local authority, who are conversant with the actual operations in connection with the erection of houses from the foundation up, who have technical knowledge and, possibly, knowledge of building costs, to be associated with the operation of Section 27. If outside valuers are brought in, they will fix what they deem to be a reasonable price, but it may be very much lower than the price the potential purchaser thinks it should be. In that way, you will have a repetition of the evils which flowed from the operation of the Small Dwellings Act of 1899.

Deputy McCann referred to a racket under the heading of finance. That is perfectly true. We have had abundant evidence in Dublin of fines on individual sites running from £200 down. There is another section of the people who may also come very closely within that category. My general experience of solicitors and architects is that, in the main, they are people who are reasonable and who are prepared to treat with their clients on a basis that is generally acceptable. But, frankly, there have been departures from that code which are by no means of an isolated character. I think the purchasers, since they are being taken under the wing of the Minister to such a large degree, might be taken completely under his wing, because after the deposit which will be paid under the Bill and after we have ironed out the difficulties with regard to valuation, the purchaser will still be faced with the question of legal costs. He will not be faced with the question of architects' costs in the same way, because now that the grant is being given to the first purchaser of a house, he can buy his house from an ordinary private builder and the question of an architect does not arise.

I want to give a sample of what is taking place so far as legal costs are concerned. I am sure the case is within the knowledge of Deputy O'Grady, as it is now common knowledge. It is the case of a borrower under the Small Dwellings (Acquisition) Act, who made an application to the Ennis Urban Council and submitted a bill of costs as follows: Urban council solicitor for negotiation of his lease under the Small Dwellings Act, £44 13s. 10d., plus £4 6s. 0d., making a total outlay of £48 19s. 10d. I should say that in the case of a number of local authorities, their legal men are paid on a different basis from that in operation under the Dublin Corporation. The average cost of a loan under the Dublin Corporation is £7 7s. 0d. Here is a man charged £48 19s. 10d.

Then there were the private solicitor's costs—that is, presumably, of his own solicitor—of £42 and there were costs payable to the firm's solicitor in connection with the preparation of the lease of £35 7s. 1d. So the total legal costs in that particular instance amounted to £129 6s. 11d., paid in effect for the borrowing of a certain amount of money which he will have to repay at a fairly high rate of interest for the rest of his life. In order to get legal possession, to get the keys of his house, he had to pay these solicitors who, it would appear, muscled in on the transaction, a total sum of £129 6s. 11d. I have the details of four other cases before me in which the legal costs to the individuals concerned amounted to £50, £50, £50 and £30. I suggest that in so far as the Minister proposes to take power under this Bill to include in the cost of the house reasonable legal expenses he should direct the attention of his officers to what is apparently taking place when certain members of the legal profession are employed and I would suggest to him that people, who can least afford to be taxed in this way, should be protected.

May I make one more observation and I shall conclude on it? So far as this question of costs in reference to housing is concerned, it has struck me that the provision of houses for people in the urban areas and cities is the counterpart of the scheme that placed the farmers of our country in possession of their holdings. Now the Land Commission has been severely criticised all down the years, but there is one thing that can be said to its credit: its legal procedure appears to have been a model of simplicity and the title which it gives, complete and absolute, is disclosed in what is known as the land certificate. What is wrong with a procedure of that kind being employed to ensure that unfortunate people who are seeking houses will not be mulcted in the way I have described?

Major de Valera

What about the stamp duties?

May I ask Deputy O'Sullivan a question? What was the amount of the loan in that case?

It does not matter. The costs were scandalous.

Major de Valera

The stamp duty is another matter that should be taken into consideration.

This Bill makes certain essential adjustments in the legislation already passed, such adjustments having been found necessary as the result of experience. That is, in the main, what it does; and, so far as it goes, we all welcome it. Certain defects developed in the working of the 1948 Act which are now being corrected in this Bill. If I understood Deputy O'Sullivan correctly—unfortunately I could not hear him too well owing to his hoarseness—I think he referred to the failure of the 1948 Act. Unfortunately I have not with me the figures that were given here recently, but if my memory serves me right, in Dublin, at any rate, of the total number of houses that were built, half of them, or nearly half of them, were built by individuals and public utility societies.

May I say that there was no suggestion from me that I was criticising the broad outlines of the 1948 Act?

Did you not refer to its failure?

I think Deputy O'Sullivan referred to its failure, but if he did not mean that, well and good.

The broad outlines of the 1948 Act were very good. There is no doubt about that.

The big thing that strikes any Deputy examining this Bill is that if progress is to be made under it, as we all hope under the new conditions progress will be made, there must be some specific arrangement about finance. We have had the position in the last 12 months, although the number of houses built was not at all satisfactory, that the corporation was driven to extremes to find the money and then they had to find it on most uneconomic terms both for the building of houses erected directly by them and for the financing of loans for grant houses, as they are called. There was a position at one time last year when a number of people with whom I happened to be in touch did not know where they stood as regards the commitments they had taken on themselves for the building of houses. There was a period when the corporation announced that they had only a certain amount left to operate the Small Dwellings (Acquisition) Act and that only a certain number of loans could be given. I know that certain people were very apprehensive because of the commitments into which they had entered and they did not know how they were going to complete the job which they had taken in hand.

Again, a rate of interest of 4 per cent. on the amount borrowed spread over a period of five years is enough to daunt any young man starting out to set up a home. He will have to pay a heavy sum for the rest of his life to keep a roof over his head. Much of that could be avoided, if interest rates were more reasonable. The Minister should remember that before this Government came into office, the corporation was able to get money at 2½ per cent. We have never had a satisfactory explanation as to why interest rates jumped by ¾ per cent. immediately the Government came into office. I would suggest that the Minister should make inquiries along the lines suggested by Deputy MacEntee as regards the price of building materials and builders' profits. There is probably some room for a reduction in these figures. If houses could be purchased at a reasonable figure, the efforts of ordinary private individuals would help materially in solving the enormous problem we have before us.

The housing position in Dublin is undoubtedly a desperate problem and to my mind it has grown worse during the last ten years since the beginning of the war. A class of people outside slum dwellers has been driven into conditions that in some cases are actually unchristian and in respectable areas new slumdoms have been created. There are cases to my own knowledge of father, mother and ten children living in a room ten foot square and, until very recently, they could not be housed by Dublin Corporation because they were not in tenement houses. Deputy McCann has said that 25 per cent. of the houses will be allotted to such people, but put that way it will be a long time before some of them are housed.

One good thing that I did read into the Bill was that some of those people, if they can save 5 per cent. of the money, will possibly be able to get a house, or alternatively, which would suit better some of the people I have in mind—because, owing to conditions and the rents they are paying, they will never be able to save that sum— it will be possible for the corporation to resume building of tenant-purchase houses. I think that up to this the Minister's policy has been not to sanction tenant-purchase houses. I think I am correct in saying that some time ago the corporation intended to build tenant-purchase houses on Dolan's land, Philipsburg Avenue, Fairview. It was arranged but the Minister withdrew his sanction. I think that was a mistake. I have pleaded for this on every occasion I got since I came into this House. The class of people catered for by the tenant-purchase houses have had no provision made for them over a long number of years. I am a Dublin man and I know more about it than a lot of people who talk about it and the classes who have been driven into such conditions as were never known before due to the war situation, the hold up of ordinary building and the unfortunate fact that they are not able to find a deposit and pay big money, have had no provision made for them. The tenant-purchase schemes which were carried out some years ago are a proof of the efficiency of that system. I think that the Minister in his statement mentioned that such schemes would not be a charge on the rates. As far as I know the rent payable by these people covers all the outgoings including principal and interest on the loan.

As Deputy McCann mentioned rents are becoming such that there is a tremendous complaint about them. There is 3/2 on the rates in Dublin for the Housing Act this year to make up the deficit on housing, and I know people who are paying that 3/2 on the rates who are a lot worse off than some of the people who are getting subsidised houses. I have met them personally, people who happened to have been left a little cottage by their father or grandfather, and whose conditions are such that they can get nowhere else. The Minister should certainly give us some information if he can as to what is being done about finance, because this Bill will be just so many pious hopes if the financial question is not tackled, not just for the next few months, but for a long time ahead. If it is to be a success it will be necessary to carry on for a long number of years before the housing problem is dealt with, as far as Dublin is concerned at any rate, and I seriously suggest to him that we should have an answer.

There are a few points in the Bill on which I should like some clarification. Section 6, sub-section (1) (a) lines 37 and 38, states:—

"And is occupied for the first time on or after the date of completion of the purchase."

I want to know if that will create any conflict with the position that obtains at the moment in Dublin, where people who borrow under the Small Dwellings Act on a grant house, must actually be in possession of the house before they can get payment. They generally have to get in on a caretaker's agreement to achieve that, as they are not in a position to finish the purchase of the house before that. If there is conflict I would like the Parliamentary Secretary to look into it, so that we will not have legal bothers in the future.

Then there is the question of market value in Section 27. We have heard a good deal to-night about site buying and I agree with what has been said, but the fact is that people getting grant houses have to face that. I would ask the Parliamentary Secretary if the amount of the site fine a man might have to pay for the purpose of building his house would be included in the "other expenses". What is the meaning of the last phrase:—

"Not including any fine, premium or other consideration for the acquisition of or leasehold interest in such tenement."?

Does it mean that his site fine is ruled out? If so, if people have to continue paying £150 or £200 which we all know is the average or perhaps even more in some cases, it will mean that a number of people will not be able to take advantage of the Bill. Either something must be done about the question of site fines or they must be included in the amount calculated as market value.

With regard to the question of trade union labour mentioned in Section 12, naturally our objection is not to the principle of the section, but I would like to know if it could be held to operate against a group of young men who might get together, as has happened already, to build their own houses? In the case of men in various occupations who might come together to work with each other, is it possible that the clause as worded would be held to rule them out? I do not think any of us wants to stop people from helping themselves and I should like the clause to be examined from that point of view.

We all agree with some of the other changes which the Bill makes. The increase in floor space, now that materials are more plentiful than they were when the other Act was passed, will allow better and more valuable houses to be planned in future. The prescribed 1,250 square feet area turned out to be an awkward area in planning, I understand.

I should like to support the plea made by Deputy MacEntee that it should be made essential that the ranges and grates to be fixed in grant houses should be capable of burning turf to ensure that, when supplies become available for everybody, it will be possible to use turf in these ranges and grates. I think that a very good national policy from every point of view. I have tried to support that policy up to the present, even though some of the grates in my own house are not very suitable for this purpose. Some of them are and some of them are not, and I think it would be wise if such a clause were incorporated, so that it would not be possible for people in these houses in future to say: "My grate will not burn turf", and so that they will not have that excuse for not using it. On the whole, the Bill, if it can be put into operation, should prove useful. The big essential will be finance and I suggest that steps should be taken to make finance available and we ought to be informed what steps are being taken to ensure that it will be available.

I rise only because of a statement made by my colleague, Deputy McCann, concerning the price of sites in Dublin, and to direct the Minister's attention to a similar situation in the town of Ennis. I am sure that a similar situation obtains in other towns, but I am particularly familiar with the situation in Ennis. There sites are being sold to prospective house builders at £125 each, and, as there are eight houses sited on each acre, it works at £1,000 per acre for a start. On top of that, there is a ground rent of £8 per plot. The landlord gets £1,000 in cash and an income for 999 years of £64 per acre. Something ought to be done to bring down these costs, because, on top of that also, in Ennis, there is the racket to which Deputy Martin O'Sullivan referred of legal expenses.

Has it not stopped yet?

Not at all; it is too profitable for the legal fraternity. These expenses are working out at an average of about £130—£129 6s. 11d. was the figure given by Deputy O'Sullivan. I have got somewhat similar figures from people who have had to pay. In all conscience, as everybody, even the lawyers themselves, will agree, that is overdoing it.

The Incorporated Law Society has said that it is wrong.

I am glad to hear that and I hope the society will take action about it——

It is completely wrong.

——and that the Mini ster, if it is within his power, as it ought to be, will do something to remedy that state of affairs. Unfortunately, laws are drafted by lawyers and they will scarcely penalise themselves too much. Nobody will grudge them a reasonable fee, but they ought to consider the poor people who have to pay. Legal fees in respect of these loans in Ennis—and the same obtains elsewhere to a lesser extent—run to about £130 and they are one of the principal reasons why building costs are so high, plus the costs of another class who enter into the building of houses, the builders' suppliers, who, Deputy MacEntee told us, are also reaping a rich harvest. The Minister ought to look into it and help so far as possible to reduce the cost of building to enable these people who are so badly in need of houses, particularly in the provincial towns and in the City of Dublin, to be provided with suitable accommodation at a fairly reasonable figure.

Since Deputy MacEntee sat down, I have been wondering if I heard him aright when I heard him describe this Bill as "this puny measure". I assume that I am right in that and I think Deputy MacEntee will agree that that is scarcely a fair description of the Bill.

He was speaking in a Pickwickian sense.

Compare it with the 1932 Act, which was a Housing Act.

I heard him describe the 1932 Act as a monumental measure and I agree with him in that, but he ought to give credit where credit is due and ought at least to concede that the Sunday Press last Sunday was right when it described this Bill in very laudatory terms. It would be a nice gesture on Deputy MacEntee's part if he now retracted the word “puny”, because this is not a puny measure. Every fair-minded person will agree that it is a great stride forward and the Minister is to be congratulated and will be congratulated by every Deputy and by people all over the country on its introduction.

I am not one of those people who will say that Fianna Fáil did not do a great job of work with regard to housing. I agree with Deputy MacEntee when he describes the 1932 Housing Act as a monumental measure, and I think that Fianna Fáil have much to boast of and to be proud of with regard to their housing programme in their early days. It is only right and fair to say that.

That is not what Deputy Dunne said to-day.

I am not responsible for what Deputy Dunne says. These are my views.

You are in his company in keeping the present Administration in office.

That is petty.

The Minister has something to be proud of in this measure, and it is a measure of which this inter-Party Government may well be proud. There is one further observation I want to make, as I appreciate the time is limited. It is again with reference to Deputy MacEntee's speech. I gathered from him that he was very much afraid of the financial implications of this measure, very much afraid that this country would not be able to afford the amount of money which will be involved in the housing programme and that this Government would not be able to find the amount of money involved. I could not understand that coming from Deputy MacEntee particularly, who, if my memory serves me aright, and I believe it does in this instance, last year or the year before upbraided the members of Clann na Poblachta and censured them for not having the enthusiasm, the drive and the energy which he said he expected from them in the light of their preelection showing. So far as the Clann na. Poblachta Party is concerned, money is not going to stand in the way of providing the people of this country with decent housing. I say that, knowing that I am speaking for the Party and speaking the Party's mind. The Minister for External Affairs, the Leader of the Party, has said it and it is right to say that the Taoiseach has said it, that the Minister for Local Government has said it, and I believe the Minister for Finance has said that he is not going to let pounds, shillings and pence stand in the way of the provision of decent housing for the people of this country.

For these reasons, I, on behalf of this Party, congratulate the Minister for Local Government on introducing this measure. I wish him all luck in its passage through this House and in its implementation when it becomes law.

On the whole, we welcome this measure. We welcome it because it is designed to bring about improvements in the possibilities of providing houses, in the various categories, for our people. It is a Bill to bring about a cure for technical defects in previous Acts. I was glad to hear Deputy Timoney say, generously, that he recognised the 1932 Act was a very big forward step, for which the country can be grateful to the Administration of that time. I was rather surprised to hear Deputy Martin O'Sullivan—I am sorry he is not here —use the phrase "failure of the 1948 Act".

He explained it afterwards. He did not say that.

I want to repeat, for this reason, that certain Press organs in the morning could come out and say "1948 Act a failure".

You will be disappointed.

I am glad that I will be disappointed.

You heard Deputy O'Sullivan and he did not say that.

It is wishful thinking.

There is dishonesty about that.

I heard him, and he did.

He did not.

I say that the word he used was "failure" but he subsequently explained that he did not mean it in the sense in which it was interpreted here.

He explained what he said, not what you like to interpret.

Let us hear what Deputy Briscoe has to say.

It is annoying to hear these dishonest twists.

Do not talk to me about that. The Deputy who is encouraging people to join an army for a certain purpose and says it is for a different purpose need not tell me about twisting.

That is not relevant.

The Deputy is entitled to an answer when he makes a statement.

Let us not be led away from the Bill.

I will not be led by that army, and I will not be with the Duke of Plaza Toro when he goes to march.

There is no reference to that Duke in this Bill.

There has been some reference to what are called legal costs. I attempted to deal with this matter yesterday, but I found I was out of order on the Estimate. I wanted to deal with it in more detail, but it has been dealt with to-day in sufficient detail. Legal costs are a big item for those persons for whom this Bill seeks to create additional facilities to acquire their own little houses. Apart from the legal costs, which I think the Minister will look into, I do not know that this Bill goes far enough in making it possible for the type of person the Minister has in mind to acquire his own house. I want to say quite openly and frankly that I believe the Minister is trying quite sincerely to improve existing legislation. I say that without any hesitation or reservation. I want to point out, however, that the Minister will find disillusion and disappointment because of technical difficulties of which, probably, he has not been made aware.

We are reducing the deposit to be demanded of a person who is to be given a house but, if the Minister will examine the position, he will find that the income of the applicant will be the main consideration by the local authority as to his ability to meet his commitments. I have knowledge of this situation. The corporation or a local authority will rent a house to an individual whose income, say, is £5 10s. per week. That person will not be able to buy a house even though the commitments would not be in excess of the 25/- a week rent. It may be that the authority has in mind that if he falls into arrears with his rent, they can evict him. I have knowledge of particular cases where a person had an income of £7 or £8 a week but who, on account of his private expenditure, was not as good a risk for the local authority as the man with £5 10s. a week. The man with £5 10s. or £6 a week may be a non-smoker, non-drinker, non-gambler. His wife may save money by sewing for the children but, because that person's income, on the face of it, is not sufficient, from the point of view of the local authority, to be regarded as a good risk, he is denied a house while another individual, who may have £1 a week more, but who may smoke 40 cigarettes a day and drink three or four pints a day, and have other methods of spending his money, is regarded as a good risk.

I would like the Minister seriously to consider how that person may be met who, from the point of view of his character, from the point of view of constant employment and from the point of view of his private behaviour, is a worthy person to be considered and to be helped in the acquisition of his own home. I do not want to develop that too far but, if the Minister will make inquiries, he will find that what I have said is correct and that I have not exaggerated. I move the adjournment of the debate.

Debate adjourned.
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