asked the Minister for Local Government whether he is aware that the price of building land in Dublin is now a major element in the rising cost of houses; and whether he proposes to take any action in regard to this matter.
Ceisteanna—Questions. Oral Answers. - Price of Dublin Building Land.
8.
Mr. O'Leary
I am aware that because of the number of houses provided in the Dublin area, totalling about 23,000 in the past 5½ years, the pressure on the supply of serviced land for building has resulted in increased land prices.
This increase, together with other increases such as the increase in labour costs, which account for up to half of the cost of building a house, and the increase in the cost of materials, has resulted in the rising cost of houses to which the Deputy refers.
As to the final part of the question, I would refer the Deputy to my reply to a question on the same subject on 13th April last.
Does the Minister consider it a satisfactory situation that land for building purposes is now being sold in the environs of Dublin city for £5,000 an acre? Does the Department propose to do nothing about this extraordinary price for building land?
I do not consider the present price which is being obtained in some instances for land to be satisfactory, and my Department have done something about it, as I said on 13th April last. These measures have had a certain effect.
Will the Minister take it from the speculative builders who grab it up and inflate prices?
Is the Minister aware that speculators have bought land from owners who could not get planning permission to build houses on it, and that immediately the speculators bought it, they were able to get planning permission to build houses, and in some instances they got as much as 1,000 per cent profit on the land?
The Deputy cannot produce any evidence of such things happening. I am quite certain he cannot. He can say things like that at chapel gates in Limerick but he cannot produce evidence of any single instance in which this happened. It is a product of the Deputy's imagination.
Is the Minister aware that one speculator bought land for £23,000? He got permission from the Department to build houses on it. He sold it for £75,000 and gave a £10,000 subscription to the Fianna Fáil Party. That cannot be denied. It is a well-known fact.
The Deputy only invents that.
(Interruptions.)
Would the Minister agree that in a situation where land is going even near the price of £5,000 an acre, something drastic must be done? Would he agree that his Department have been sitting on the fence in this matter?
I would not agree. Since March last the Dublin authorities have acquired sufficient land to accommodate over 5,000 dwellings and with the land they have available they can now provide not less than 8,000 sites within two years in the Dublin area.
Is all the land the Corporation have serviced at the moment or will it be serviced in the future? Can houses be built on it at the moment?
Some of it.
Is it not true that very little is serviced?
Not "very little."
Ten per cent of it is not serviced.
And on that that is not serviced building can be allowed so that it will be completed at the same time as the services are provided.
Surely Templeogue is the only place where that is happening? It is not on the north side as yet.
It can happen in different places.
Did the Minister ever hear of gracious living? What about Castleknock at £8,000 per house?
I am aware that all houses are not sold at the same price.
(Interruptions.)
Is the Deputy worrying about these people? I am not. I am concerned with small houses. I am concerned with keeping down the price of small houses and others who are able can pay whatever price they like. I do not care.
If you cannot maintain a ceiling price on land, the price of houses will go up in the long run.
I am taking the necessary steps to make sites available for modest-priced houses. The Labour Party never did anything about this.
(Interruptions.)
The Labour Party never showed any concern until they heard me talking about it.
The Minister has a chance to do something about it.
The Minister is just covering up. Do not think you can cod the people as easily as that.