asked the Minister for Local Government what steps he hopes to take to secure a reduction in the inflated price of houses.
Ceisteanna — Questions. Oral Answers. - House Prices.
10.
In so far as land costs affect house prices, I have, as indicated in my reply to Question No. 37 of 15th February, 1967, emphasised the encouragement given to local authorities for many years now to acquire and develop building sites well ahead of programme requirements. The provisions of the Housing Act, 1966, which I brought into operation recently, will strengthen their powers in this respect and I expect them to use these extended powers, within the limit of available resources, to the greatest extent possible, so that the accretion of land values as a result of development by them will accrue, through them, to the benefit of the community.
Since the date of my reply to that question, I have also announced details of a special programme for the provision by the Dublin local authorities of a large number of additional sites for private housing development, as a matter of urgency, in their areas. I have also introduced the provision for a subsidy equivalent to up to £150 a site for developed sites for private housing provided by local authorities. Details of this subsidy will be notified to local authorities in the next day or two.
So as to adjust the imbalance between the supply and demand for building land in the long term and thus stabilise as far as practicable the level of land prices, 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 are in prospect in accordance with development plans under the Local Government (Planning and Development) Act which will augment considerably the amount of serviced land available in the Dublin area.
In regard to the supply of capital to enable the housing programme to go ahead on a smoothly rising gradient, I have initiated discussions with the principal building societies and assurance companies, who between them provide some £11 million a year for house purchase loans, to see if any acceptable method can be found of improving the supply of funds for housing, thus ensuring a reasonable degree of assurance among builders as to the future and enabling them to plan output and reduce costs to the greatest possible extent. The provisions of the Housing Act, 1966, dealing with the local assessment of housing needs and planned building programmes by local authorities, which I recently brought into force, are also aimed at this object.
In so far as questions of design and organisation in the building industry affect costs, an investigation has been initiated, through An Foras Forbartha, of a means of improving rural house design and of achieving a greater degree of standardisation in building components generally.
I should, however, emphasise that many of the problems associated with rising house price are not susceptible to easy or quick remedies. Labour costs, for example, which may account for up to half of the cost of building a house, are determined by well-known processes, while the prices of materials are often settled by external factors over which we have no control. In the long run, the best means for ensuring value for money for house purchasers is the achievement of a proper balance between supply and demand coupled with an efficient building industry, and it is towards these ends that the measures I have indicated are directed.
Did the Minister read my question at all? I did not ask for a series of boasts as to what he is doing, or purporting to be doing, about the housing problem. The question asks specifically what steps he proposes to take to secure a reduction in the inflated prices of houses. Is the Minister now suggesting to the House—it would appear he is from recent speeches— that the people to be blamed for the present usurious level of house prices in this city and surrounding area are the farmers who own the land upon which the houses are built, in the first instance, and the workers who build them, in the second? Is that the result of his analysis of the housing situation? The Minister for Agriculture and Fisheries can prompt him in a few minutes when I am finished.
He does not need any prompting.
Then why were you doing it?
Would the Deputy get on with his speech?
If he does not need it, you should not be doing it. I have as much right to make a speech as the Minister for External Affairs. I do not want to make a speech. I want to get some information on behalf of the many thousands of people who are trying to save money to assemble deposits of up to £500 or £600 in order to put it down on a house.
The Deputy is——
I am looking for information. I have as much right as any other person in this House to make any speech.
The Deputy has the same rights as any other Deputy.
With all due respect, let us see evidence of that.
No Deputy has been allowed to make a speech at Question Time.
The Minister spoke for 20 minutes.
Will the Deputy please ask a question, if he has one to ask?
I am asking the question; is the Minister for Local Government satisfied that the present extortionate level of house prices in and about this city is justifiable on any grounds and, apart from the litany of vague promises he has given us, does he propose to take any concrete steps to relieve the burden on these unfortunate people by positively taking steps to reduce the extortionate profit accruing to house builders——
I would ask the Deputy to desist.
——whom he is apparently trying to shelter.
I mentioned the two factors which Deputy Dunne picked out as being two of the contributing factors to house costs. I do not think that even Deputy Dunne, who closes his eyes to anything that does not suit him on a particular occasion, could say that the cost of sites and the cost of labour are not contributing factors to the cost of housing. In so far as the cost of labour is concerned, I did not represent it as being in any way a culpable factor in the cost of houses. But I did on a previous occasion advert to the fact that, in an overall increase in the cost of the superstructure of local authority housing of approximately 30 per cent, the contribution made by labour costs was of the order of 50 per cent.
In regard to the cost of sites, neither did I say that this was a sole contributing factor to the increase in the cost of houses. But I did say, and do say again, I think it is completely unjustifiable that individuals, who just happen to own land which is affected by services provided at the expense of the community as a whole, should make extortionate and totally unearned profits from the fact that the community made this investment in providing these services. Apparently, Deputy Dunne, and indeed the Labour Party in general, as far as I can see, object to that——
That is a lot of cod.
(Interruptions.)
The fact that I have listed here a number of things which are being done to ease the situation and to reduce certain of these costs seems to have annoyed the Labour Party. They see the prospect of one of the things they have been moaning and groaning about eventually disappearing.
This ten years we are moaning about it.
The Minister gave, as one of the main reasons why prices have increased, that there is not sufficient available building land and that the local authorities have been asked to secure more land. Is it not a fact that, when they do secure it, they do not get the money to buy it and pay for it? That is our experience in Dublin County Council.
That allegation is not sustainable.
Is it not a fact that the Minister's mean insinuation that the Labour Party are supporting land exploitation is political propaganda?
That is what Deputy Dunne said.
That is a lie.
Let me be more particular and say Deputy Seán Dunne.
The statement that it is a lie should be withdrawn.
It is a terminological inexactitude, or whatever you call it.
The Deputy will withdraw the expression "lie".
I will withdraw it in the interests of order and so that I will be allowed to remain on in the House to deal with this matter. The Minister is trying to do two things——
The Deputy may not make a speech.
——to make political propaganda and to cover up for the builders who are making extortionate profits from the people.
It is clear that in his supplementary speech Deputy Dunne objected to my listing as one of the factors in the increased cost of housing, the fact that farmers, as he described them, were getting big prices for their land.
The Minister will not be allowed to twist what I say.
He has made his position quite clear, that he objects to anything that will limit the profits of landowners.
The Minister will not be allowed to twist here, before dinner or after dinner or anywhere else, what I say.
I am calling Question No. 11.
The Deputy's objection is that this cause of complaint may be removed.
The Deputy's complaint is that you are asleep.