asked the Minister for Local Government when his attention and that of his Department was first drawn to the fact that house prices were unnecessarily inflated through individuals making exorbitant and totally unearned profits from the community's investment; on what subsequent dates such reports were made to him and to his Department; why no action has already been taken in respect of this very serious matter, having regard to the fact that almost all of the building land has been bought up by developers and builders; and what action he now proposes to take to prevent a continuance of excessive profiteering in housing development.
Ceisteanna—Questions. Oral Answers. - Price of Houses.
37.
The Minister for Industry and Commerce is responsible under the Prices Acts, 1958 and 1965, for price control, including control in relation to the prices of houses, and it is to his Department that formal complaints under the Acts of specific cases of excessive house prices are conveyed. In so far as my Department is concerned, the Deputy will be aware that section 35 of the Housing Act, 1966, which was before the Dáil and Seanad for over a year, provides that I may refuse to allocate, withhold or reduce a housing grant where in my opinion, after considering any representations the grantee may wish to make, the price of the house does not represent reasonable value.
To ensure the most economical development possible of available land, section 24 of the Act makes special grants available for residential flats provided by private developers and buildings of three or more storeys.
With a view to ensuring that any accretion in land value as a result of development by a council accrues to the benefit of the community, my Department advised local authorities by circular letters of 14th May and 12th October, 1960, 10th December, 1962, and 24th May, 1965, of the desirability of acquiring and developing building sites well ahead of programme requirements. Local authorities have been repeatedly urged in Ministerial speeches to adopt a vigorous and progressive policy in this respect. Section 44 of the Housing Act, 1966, provides for the payment of a special subsidy for provision by local authorities of sites for private housing development and section 77 clarifies and extends the powers of compulsory acquisition for these purposes in advance of ascertained needs. I brought these sections into force on 31st December, 1966, and I expect local authorities to use their powers under them to the greatest possible extent within the limit of available resources, particularly in areas where the cost of building sites may be disproportionately high.
Planning authorities are required under the Local Government (Planning and Development) Act, 1963, to make development plans for their areas by 1st October, 1967. The plans must state objectives for the development of their areas, including the needs for serviced land. Planning authorities are obliged to take action to ensure that these objectives are met. I am aware that a scarcity of serviced land in the Dublin area has resulted in keen competition for available building land. In this regard, I may say that it is my policy to give priority, in the allocation of capital for sanitary services, to schemes which are required for the servicing of lands earmarked for new housing or new industries. Large-scale drainage projects which are in prospect will augment considerably the amount of serviced land available for housing in the Dublin area and the resultant adjustment in the imbalance between the supply of and demand for building land should tend in the long term to stabilise as far as practicable the level of land prices.
Planning authorities have power when granting permissions for development to require contributions towards any expenditure by them on works which facilitate the proposed development. This power is in fact used by planning authorities.
The effectiveness of the existing statutory powers in coping with the problem of the availability and cost of serviced land generally is at present under review.
What was the Minister talking about in Cavan?
Having regard to the Minister's recent speech, would he say when his attention was first directed to this development of excessive prices for houses and what action did he take about it or what action does he propose to take?
I have detailed some action already taken and I have also said that the effectiveness of the existing statutory powers is at present under revision.
When did the Minister first make the discovery?
It is to be assumed there is some communication between the Department of Industry and Commerce and the Department of Local Government? Surely the Minister did not discover this only when he became Minister for Local Government? If it is a fact that house prices are unnecessarily inflated through individuals making exorbitant and totally unearned profits on the community's investment, it must have been noted by the Minister's predecessor and the various Ministers for Industry and Commerce? Would the Minister tell us when the Minister for Local Government, either himself or his predecessor, Deputy Blaney, became aware of this and whether or not any action was taken?
I have mentioned some of the actions that were taken. This is not the only element in the price of houses that tends to inflate those prices.
When did the Minister make this alarming discovery?
The Minister knows this for a long time.
What did he do about it?
He gave, on appeal, planning permission for all the prestige buildings about which he is now complaining.
I have told Deputies what has been done about this and that local authorities have been exhorted on a number of occasions to use the powers they have been granted.
In relation to the exhortation of local authorities, is the Minister aware that the main cause of delay in the provision of services is the failure of the Department to sanction the necessary money and the failure of the Department over long periods to sanction plans for extension?
There are no such plans awaiting sanction.
Will the Minister give us an assurance that he will take the trouble of conveying to his associate in the Cabinet, the Minister for Industry and Commerce, that he is aware—that he has been made aware in the House now, if he was not aware before—of the fact that exorbitant and robbing prices are being charged for houses, and that something must be done about it? Will he convey to the Minister for Industry and Commerce that we require immediate and appropriate action against the individuals concerned? Will he give us that assurance, or do we have to expose him here, as I will do? What is the answer to that?
Not allowed.
The Minister for Industry and Commerce dealt with any such case that was brought before him.
The Minister knows full well that there is profiteering in housebuilding on the fringe of the city. Will he now draw this fact to the Minister's attention and have something done about it?
I do not think this can be dealt with satisfactorily by price control. That is not the way to deal with it.
So the Minister admits it is a fact?
What is a fact? I have said that I believe people have been making excessive profits out of land due to the investment by the community of money in the provision of services.
Question No. 38.
I have told the House that already they are being dealt with.
You have done nothing about it.
I have read out a number of things to which none of those Deputies were prepared to listen. Perhaps some of them might decide to read them afterwards.
(Interruptions.)
I could read them again.
Question No. 38.
With your permission, Sir, I propose to raise the subject matter of this question on the adjournment, having regard to the unsatisfactory nature of the Minister's reply.
I shall communicate with the Deputy.