asked the Minister for Industry and Commerce whether he intends to investigate the reason for the increase in the prices of newly built houses announced in recent weeks.
37.
Ceisteanna—Questions. Oral Answers. - Prices of Houses.
36.
asked the Minister for Industry and Commerce if he will hold a public enquiry into the recent increase in the price of houses, particularly houses built under the SDA legislation; and if he will make a statement on the matter.
I propose, with your permission, a Cheann Comhairle, to take Questions Nos 36 and 37 together.
I announced on 15th January, 1965, that I am prepared to investigate any case in which there is prima facie evidence of an unwarranted increase in the price of new houses, provided the full facts in relation to each case are made available to me.
I also announced on 4th February, 1965, that, as a result of action taken, so far, by me, the building contractors for a major housing scheme in Dublin were cancelling notifications to the purchasers concerned of increases in the contract prices of their houses and that these purchasers would now be required to pay only the original contract prices for the houses and the amount of duly established increases in building costs incurred subsequent to the dates of signing of the contracts.
Will the inquiry refer only to the cost of houses or will it include land values as well?
No, it will refer only to the cost of houses.
Does the Minister propose to carry out any extensive survey of the proposed increase in house prices?
I have indicated I am prepared to have a survey of those cases in which the full facts are made known to me. I have received a number of complaints. Some of those who made the complaints have been asked for further particulars. I have not received them in a few cases, but I expect to get them in time. As soon as I get the full facts, I will certainly undertake a similar type of investigation. Land values are a different matter altogether, which would be outside the scope of the responsibility of my Department.
Except that it has a vital bearing on the matter.
Would the Minister not agree that the cost of houses must, in the final analysis, be dependent on land values?
To some extent, yes. It is a contributory factor. Land values are easily ascertainable. The component parts of a house are many. There are many factors which my Department may not be equipped to go into.
The question relates to control. Surely the Minister cannot have any control unless he has control over land values as well?
There is no question of control in the question.
Prices?
Could the Minister say to what extent the speculative buying of new houses contributes to the increase in costs?
Is the Deputy referring to competition between buyers.
A person goes into a new house and leaves it after a short time. He is offered a couple of thousand pounds and takes it. Consequently, the people building the house are inclined to shove up the price.
That is very possibly a feature.
I think they are being soured by that.
Has the Minister any figure in mind which he considers to be a permissible percentage increase in prices for new houses on the 1964 figure?
I have no figure myself. My Department have been in touch with the builders' organisations—I understand there are two involved—to see if we can have produced an acceptable figure to relate to these increases.
Does the Minister propose to make that figure available to the public as the permissible figure when it is arrived at?
I can only relate that figure to the cases I investigate.
In a case where a local authority assess the value of a scheme of SDA houses at a particular figure and the speculative builder has a higher figure for that scheme, where does the Minister come in to regulate the price as between the local authority valuer and the other valuer?
I do not come into that question at all.
Somebody should.